New build for a friend, budget of course, any critique?

Ok, so we are looking for a roughly $600ish build. He already has the case, and may have a drive, but Im including one anyway.

Here we go:
Corsair XMS2 2 gigs, DDR2 675: $70
LG DVD Burner, $29
200 gig HDD, $60
$100 P35 board
Mushkin 550W PSU, $70
E4400, $139
8600GTS, $170ish

That all totals out to $638 before shipping and taxes.

The 8600GT runs pretty slow I know, but is that GTS worth it, considering the budget?
Also, my biggest concern is compatibility. I am almost sure, but even though the board starts it support at a 1066 FSB and DDR2-800, it will work with that processor and memory at stock settings right? Also, that processor will only be running (at most) at a 266 FSB, will I need better than stock cooling? It will normally just run at 240 (since 2.4 is about right for this build, if not too much).

The future owner plays games, but is also into music, video, possibly some graphics. Does that warrant a Conroe Core, for the extra 2 megabytes of L2 cache? And would it be better to just splurge and get 4 gigs of memory, in sets of 2 gig chips?

Would be better off with an X1900XT or 7950GT, no? I gather that 8600 series offer pretty poor bang for buck.

1) Dont get the xtra memory. It is most likely not needed. You can get another 2gb if needed. However, that is generally rescricted to those doing professional grapich artist type work, CAD, or different types of virtualization. Very very few people need more than 2gb of memory.

2) Don't get the x8600 as others have pointed out. Very expensive and relatively poor performance. You may not be able to watch some hi-def DVDs on your system, but isn't that what a DVD player is for? Get a card that can play games decently.

3) Get the E4300. This chip should OC to 3.0Ghz or higher quite easily. Since your goal is only about 2.4ghz, there is no need to put more money here.

4) Try and get a HDD that uses PMR, they tend to be a bit faster and will give him a bit more room. Not a big deal at all, though. a 2nd drive can be added later quite easily.