First Build (Graphic Design/on a budget) - Need Advice

I am looking to build a ~US$700 system for graphic and web design at home. Primary goal is to run Photoshop and Illustrator CS3 fast at same time with other programs (Firefox, text editor, etc.) I am a total noob, so I could really use some help in selecting the components. Here is my first try, please let me know if this could work or if I could improve within budget (or if my budget is unrealistic). Thanks in advance.

MoBo: Biostar TForce 550 Socket AMD2 - $80

CPU: AMD Athlon 64 X2 4600+(65W) Windsor 2.4GHz - $110

Case: Cooler Master Centurion 5 CAC-T05-UW - $50

PSU: Rosewill RP500-2 500W Power Supply - $50

RAM: G.SKILL 2GB (2 x 1GB) DDR2 800 Dual Channel - $80

HD: SAMSUNG SpinPoint T Series HD501LJ 500GB 7200 RPM SATA - $115

DVDR: SAMSUNG 18X DVD±R DVD Burner/12X DVD-RAM Write, LightScribe, SATA - $40

Graphics: EVGA 256-P2-N615-TX GeForce 7600GT 256MB - $95

OS: Win XP SP2 Home - $90

Another idea I had is to use my current (~2003) Sony Vaio desktop case and psu and put the money into better CPU and MoBo but I am worried about it working with the new components.
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  1. The only I would do is to get a small hdd for the OS and programs and use the Samsung strictly for storage This way, if/when you have reinstall Windows, you won't have to worry about data loss. I'd also put together an external hard drive for back up. I imagine your go to have a lot of stuff you don't want to lose
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