This will be my first computer build. I've attached cables and applied thermal paste put processors in, etc. But will this configuration work?
 
Newegg Wishlist Url:
https://secure.newegg.com/NewVersio [...] Title=2008

Also I might be upgrading to a 8800GTX And a Q6700 Soon.
If I can find the urge to pay $50 for a bit higher clock processor I probably will but I'll probably just over-clock my Q6600 to 2.6GHz with a Tuniq Tower Heatsink(If it fits on the motherboard)
 
I need 8GB of RAM so if the ram is limiting anything just give me a cheap good quality recommendation of a power supply.

700 watts seems like alot for that system. Maybe the PCP&C 610w would be a better choice. Save a little $$ too http://www.newegg.com/Product/Prod [...] 6817703005

Take that money and apply it to the WD 640gb drives. Supposed to be much faster than the older 500gb versions
http://www.newegg.com/Product/Prod [...] 6822136218

Also if you have a microcenter in your area, you can get the Q6600 for $199 to save a little more
http://www.microcenter.com/single_ [...] id=0257938

I'll keep my power supply(May upgrade CPU, Graphics, Motherboard, and up the RAM to 16GB one day)
The small increase of the hard drive upgrade won't be a problem I was looking at them earlier.  
 
My RAM Situation is right though? If I can upgrade for about $50 on the package price of 4 2GB Sticks then tell me.
 
Will Everything else work?

Skip Q6700 and the 8800GTX. And don't buy that 8600GT.  
Just get an 8800GTS (theres an ECS model for $170).  
http://www.newegg.com/Product/Prod [...] 6814134037
 
A Corsair VX 550W PSU is enough for this build.
http://www.newegg.com/Product/Prod [...] 6817139004
 
Sciggy is right about the WD6400AAKS so take that instead.
 
Everything else looks okey and will work (not sure if you need the extra cables).

 
Buy cpu and ram from the links below
 
http://www.microcenter.com/shoppin [...] l?message=
 
http://shop1.outpost.com/product/5269577