Need Help (Parts Decision)

Allright, I have recently saved up enough money to buy a new computer, and have a couple of options.

Option #1
Aspire X-Dreamer II w/350watts
Aopen 48x24x48x16 Combo Drive
Western Digital 120GB 7200RPM SATA
Microsoft Natural Multimedia Keyboard
Corsair XMS Extreme Memory Speed Series 184 Pin 512MB
Samsung 955DF-T/T 19" DynaFlat CRT
Shuttle 865PE Motherboard for Intel Pentium 4 Processors
Microsoft Intelli-Mouse Explorer Version 3.0a
Intel Pentium 4/ 2.6C GHz 800MHz FSB
Microsoft Windows XP Home Edition with Service Pack SP1a
Creative Labs Sound Blaster Audigy 2 ZS
Logitech Z640 5.1 Speakers
Sapphire Radeon 9600XT

Total:$1212

OR

Falcon Fragbox

My only concerns on the first set up is the 350w power supply, as I game alot. I would also consider spending more for an Athlon 64, and a Radeon 9800, although usually the high end components don't have the price to performance ration that the middle end components have. All help is appreciated. I would use this computer mainly for browsing the internet, instant messaging, wordprocessing, music, and of course gaming.

350w should be plenty, except the psu on the xdreamer II sucks (my rails are .5v off on the 5 and 12 v lines). But on the other hand, its gorgeous and has great cooling. You could get an antec performance series with a trupower psu, but you'd have to drill your own fan holes.

other than that, it looks good. Honestly, I think most people around here (including me) will tell you to wait on the A64s and FX-51s. For the price of one 64bit cpu, you can build most of an athlon XP system.

The AMD64 (2.0 Ghz) is down to $400, I really doubt you could build a competent (has that word ever been used to describe computers?) system for that much money.