i want to build my first ever pc system for personal use like word typing, internet, email, uploads digital cam videos, store loads and loads of pictures from photo album (really HUGE).
i have come up with the following spec:
Asus P5W DH Deluxe (Intel 975 - 1066 FSB Conroe)
Intel Core 2 Duo E6600 Retail (2x2.4GHz 1066FSB 4Mb)
OCZ DDR2-800 2x1024MB
BFG Nvidia 8500GT 256MB PCIe
You don't mention gaming, or other resource-intense tasks, so you can save money dropping back to an e4300 CPU.
Nothing I've read has had anything positive to say about the 8500GT except that it is a DX10 part. Again, you don't mention gaming, so even a 6600 (non-GT) is as much or more power than you need.
In your place, for now I'd consider a board with integrated graphics. If you need DX10 later, or decide you want to play games, you can add a video card then.
If, however, you do want to play some games, then read Cleeve's thread on the best gaming video cards for the money, and look at the VGA charts for an idea of what FPS you might expect, based on your selection.
The pair of hard drives is a good idea. Throw in a CD or DVD burner to make permanent archives of all your pics.
Buy a reasonable PSU. At the low-cost end, FSP makes a 400W unit for around $50. Otherwise, you'll probably want to spend $80-$100 for a PSU. Read the articles and guides by mpilchfamily for more information than you ever thought you wanted on PSUs. Think of your future plans (e.g. a video upgrade) and choose its size accordingly.
Unless you plan to overclock your CPU, the stock cooler is fine. The requirements you mention don't suggest to me a need to o/c.
Whatever case you buy, make sure it provides reasonable cooling (at least one fan), but your modest components shouldn't need anything special.