Some more food for thought:
Hardware wise, don't go out of your way buying the latest and greatest processor / MB for a DAW. You would be fine with a Core 2 Quad and a MB like an ASUS P5Q PRO Turbo or something similar.
Use the money you save on more important hardware aspects of a DAW: Sound Card (M Audio is a good start), Quality Hard Drives (Fast Seek, Big Cache, RAIDing them and keeping the OS and apps on their own physical drive (SO IMPORTANT), a good MB with plenty of SATA ports and RAID capability (oh like the one I have and suggested above), MonitorS (yes do get yourself a dual monitor setup for a DAW - it is priceless), Studio Monitors (you don't have to go overboard here, but make sure you get something you will be able to accurately master the production on), Mic preamp, Mixer, etc, and most importantly THE SOFTWARE.
Video Card - Blah..... Get the cheapest PCIx you can find (supporting dual DVI out). The only reason I avoid on board video is to not share RAM. So here you can direct your savings on the more important aspects of the DAW.
OS considerations - make sure whatever software you choose to run works on the OS you intend to run it on. For example Cakewalk Home Studio 7 XL doesn't run (well it DOES but not supposed to (and has issues with) in a 64 OS. It does, however seem to be working fine in XP, Vista, and 7 (32 bit versions). So also, wiser use of money here is OS choice.
RAM - Go ahead and just start with a 4 GB kit. Yeah, so you will only be able to address 3.25 or whatever for now (if you end up running a 32 OS). If you do get an app that supports a 64 bit OS (like Sonar 8 Producer or Studio), 4GB will still be plenty, but if you want, more RAM never hurt anyone (and it is cheap). I run 4GB (FYI).
Run it Lean and Mean - This means, if you're building a DAW, make it a DAW - not a DAW / Game System / Internet Browser (that you install every active x known to man on) / Business PC / School Computer / Nuclear Power Process Control Network Data Historian Server. Install the OS, the OS Updates, a LIGHT A/V program (like AVG Free) and your DAW software (and anything else related to the DAW). The less fat your OS, the better).
Hope this helps some more.