So either a WD Caviar Blue 500gb hard drive with a 60gb OCZ Agility SSD.
A 1tb Caviar Blue hard drive.
I will be using the computer as my only computer and I will gaming a lot on it. Planning on playing high end games, but I don't buy a lot of games as I don't have a job. I don't see any videos or music being stored on it. Maybe like 100 photos (that's a stretch).
The first option is a little more expensive, but I really want my OS on a SSD! Also Steam would be really nice on one as well.
Guess I'll put the rest of the system: Case - Cooler Master Elite 430 Power Supply - NZXT Hale82 modular bronze certified RAM - Patriot 8gb DDR3 1333mhz 2x4gb Motherboard - Gigabyte H77 mATX DVD drive
Parts that I don't own yet: i5-3450 Geforce GTX660 :P Windows 7 64bit
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Yes, having an OS on an SSD is good. So, I suggest doing a SSD + HDD combination.