* Well I'd drop the Xigmatek CPU HSF in this price range, unless your going to do some pretty good OC'ing. $40 savings.
* I'd also consider getting the e7200. It'll OC well on the stock CPU HSF and will save you $50. This added savings will be used for GPU upgrade or other upgrades.
* Although you don't list a case, I'd consider getting the Antec 300 w/500w Earthwatts PSU combo. It's going for $85 and is a very hard to beat combo. FSP makes good PSU's, but for $61 shipped I'd rather spend $24 more and get a good case and a much better PSU.
4th combo from the top
The memory you selected is good, but I'd suggest getting a bit faster stuff (5-4-4-12 timings) and is cheaper after MIR's:
$65 - $20 MIR = $45!!
mushkin 4GB (2 x 2GB) 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400) Dual Channel Kit Desktop Memory - Retail
The Asus mobo is good, but if you want to save a little more, I'd consider the Gigabyte's Ultra Durable line of mobo's:
Comparison of the 2 mobo's
Now I'm going to assume you have a 64 bit OS that your building this with, since you didn't list it and your using 4 gb's of DDR2?? The first upgrade I'd consider (depending on budget) is the GPU. I'd jump up to at least a 4850, so your friend can have more gaming power, if he decides he wants it. The total savings above ($40 on CPU HSF, $50 CPU, +24 on PSU/Case combo) comes to about $70-100, depending on which mobo you select. This $ can be used for OS or for GPU upgrade, which if you already have the OS I'd upgrade to the 4850 (as stated before).