Seeking advice for building a Video editing computer 900-1200$

First off I'd like to say hi to all the members on this forum. I've been reading threads for the past few weeks and i just made an account today.

I would like to build a new computer since I haven't built one since 02 and that one is a dinosaur that i basically use for web surfing, pictures, and music. I don't have much time to play games anymore now that I'm busy with school and life i guess (fiended wow for several years) anyways I was hopeing to tackle the project of converting some 40+ Hi8 tapes to digital and doing some video editing to make dvds of home videos. Possibly even doing it to make some extra cash from people who I know that would like this done. I have a decent amount of knowledge about computers and I built the last one when I was like 13 and I haven't looked much into hardware since then so i am asking your guys' help/input on this project

APPROXIMATE PURCHASE DATE: Sometime In the Next 2 Months BUDGET RANGE:900-1200 lower is better

SYSTEM USAGE FROM MOST TO LEAST IMPORTANT: most important will be the video editing, gaming (sc2 and D3 when they come out)

PARTS NOT REQUIRED: keyboard, mouse, speakers OS maby (I have several unused xp pro codes but I'm not sure that I want to use it.)

PREFERRED WEBSITE(S) FOR PARTS: Wherever I can get a reliable products / good value (don't mind refurbished products except cpu)

PARTS PREFERENCES: I've herd good things about the new i7 and I was satisfied with the case in my last build it was a thermal take but if there are better recommendations I'd like to hear your opinions also I've had good experiences with my Asus Mobo GPU w/512mb, I need a fire wire input 4g ram minimum (how much is recommended for this 6??) Apparently I will need at least 2 hard drives one for the video files

OVERCLOCKING: maby? I didn't know this was safe/ benefits outweigh the risks

I plan on using cs4 and I also will need a new monitor but not immediately so that is not part of my budget but any recommendations for this would also be helpful

Any help/advice is greatly appreciated