My wife has a ancient E-Machine's that barely works so a new computer is needed. I've put the following
pieces together. All she does is surf and email and a little photo editing. Will this system hold her over for
LG 22X DVD±R DVD Burner Black SATA Model GH22NS30 - OEM
Item #: N82E16827136152
Rosewill R103A Black Steel ATX Mid Tower Computer Case with 350W 20+4 pin connector Power Supply - Retail
Item #: N82E16811147010
Western Digital Caviar SE16 WD3200AAKS 320GB 7200 RPM SATA 3.0Gb/s Hard Drive - OEM
Item #: N82E16822136074
That build should work fine for the intended use. The only thing I'd be worried about is the Rosewill PSU. If the budget can stretch a little, you might want to step up to a little better case PSU. The Corsair 400cx is an excellent budget PSU.
Save $5 on the CPU with Athlon X2 4850e 2.5GHz 45W CPU. It's a great match to the 780G motherboard, more power efficient than the X2 5200 and nearly as powerful.
Sticking with WinXP? 2GB of RAM would be enough.
The case and power supply you chose is the weak link in overall quality. And its $52 with shipping to my zip code.
If you look at case/PSU combos with "free shipping" you might be able to find something better that's nearly the same in over all cost. Example
+1 @shortstuff & @batuchka. I did a similar AMD build for my wife, but the X2 5400 was on special at the time. I put it on a Gigabyte 790G mobo, in an Antec Sonata III case, which comes with an Earthwatts PSU.
I'm a big fan of DIY, it's more fun and you know what your getting for your dollar. You didn't include a OS with your build so you need to figure that in the cost of a home built system and remember that a retail system has a OS preinstalled. That said you might consider an off the shelf system from a retailer or etailer. With the economy the way it is many are advertizing systems that might fit your needs at some pretty good prices. If you go the home built route rather than down buying the CPU consider this one the AMD Athlon 64 X2 7750 Kuma 2.7GHz 2 x 512KB L2 Cache 2MB L3 Cache Socket AM2+ 95W Dual-Core black edition Processor.
It's only about $17 more and will overclock nicely since it is a black edition. You mentioned photo editing, will that require much if any 3D video from the system? The onboard video is probably good enough but you might consider slapping in the best card $40-50 will buy. Not pushing one brand or another but, this one is $22.99 after MIR.