CPU - Intel E2160
PSU - Corsair vx 550w
HDD - WD 320gb
RAM - G.Skill 2x1 ddr2 800
MOBO -  GIGABYTE GA-P35-DS3L
CASE -  Cooler Master Elite 330 RC
GPU - MSI Geforce 8400gs - I know this is very cheap. But it will have to do for now. I will definately be upgrading this in the future. Its only $25 w/ $10 mir.
I will be buying these parts very soon from newegg. So please let me know how it looks.

so you're going for low-end budget gaming/workstation type computer?
 
If so, those parts will do you fine, I dont see any issues with them.

You might want to consider this PSU/Case combo for $115 - $30 MIR = $85!! Not bad for a 34A on the 12V rail PSU!!  
ANTEC Sonata III Mini Case Retail  
http://www.zipzoomfly.com/jsp/Prod [...] e=10005323
 
The rest of it looks okay. What is your budget for this build? Can you transfer over any parts from another build?

your choices are good ones for OCing. toss in an aftermarket CPU cooler, read the OCing guide, and get a free performance upgrade.
 
what are the timings on that GSkill RAM? look for 4-4-4-12. Corsair has some cheap RAM with 4-4-4-12 timings.
 
listen to lunyone if you are on a budget - the case/PSU he mentions is a good deal since the PSU that comes with it is an Antec Earthwatt 500 which is tier 1 (or 2?).
 
also, don't forget you will need an optical drive if you plan on installing any software
 
PS HERE is a link to help you select a CPU cooler if you think OCing is in your future. the best one on the list is $39 i think. if you buy a CPU cooler, don't forget to buy some mx-2 thermal compound ($6) which I've been reading reviews on that say it is better than arctic silver 5.