Waste of money, and way overkill when you can get the same performance for vastly less? Absolutely.
So many things here, that can be cut without any losses in performance.
To the cutting block we go!
1) Ditch the motherboard. nVidia chipsets are poor, DDR3 motherboards are a terrible value. DDR3 is RAM is very expensive and equal/slower in speed than DDR2. Go with an x38/x48 chipset Intel motherboard by Asus or Gigabyte.
2) WHY! There is no reason to EVER buy that CPU unless you enjoy spending vastly more money than you need to. Pick up a Q9450 for $900 less and overclock it to the same level or beyond. Same performance a fraction of the cost.
3) 9800GX2 is a stopgap video card (8800GT SLI on a single card). nVidia did the same thing with the 7900GX2 right before the 8x00 series came out. Cards like this are a terrible value, as the new (2xx) series card will beat an 8800 SLI setup with a single card. Go with a single 8800GT right now, or wait for the 2xx series. Getting 2 of them is really foolhardy, especically with a 22" monitor. You will NEVER use 4 video cards, but your power company will thank you for the power you crank out.
4) DDR2-800 4-4-4-12 RAM 4GB.
5) Raptors are a bad value. Good 7200RPM drives are just as fast now.
6) Don't buy a single 1TB hard drive. Buy 2x 500GB drives with 32MB cache.
7) Water cooling? again WHY unless you want a 4GHz+ overclock. Otherwise waste.
8) Apevia's PSUs melt in testing so there is no way in hell I would buy one of their cases.
Monitor: Nice, but with the money you saved on the grossly overpriced CPU, pick up a 24".
Good DDR3 > Good DDR2 > Bad DDR3 > Bad DDR2, so I hear.
There isn't a double speed difference. Timings and other factors work into play. I haven't checked the benchmarks on it lately, but I doubt you'd even get a 20-30% performance difference over a good DDR2.