I have an old computer that I sort of built myself (I did everything but connect the case wires to my mobo) and it was midrange at best when it was new. So, I find myself looking to build a PC for gaming as well as a schoolwork machine (grad school possibly). That having been said, my PC budget will consist of whatever I can scrimp by cutting back to instant noodles, etc. I'm not figuring on being able to spend more than about $6-800 unless I can borrow some money from my folks. Any help will be appreciated, and you will be eligible for a prize. (more at the end of post)
Criteria/Details
CPU:
I'm indifferent to brands, but Intel seems to be the favorite amongst people, and I figure I could give a Hackintosh type setup a try. I don't overclock (I don't like to gamble with my technology), so I don't expect to need an aftermarket cooling solution
Motherboard:
Integrated audio is a must (unless someone can provide a compelling reason to use an add-in card), and plenty of SATA connectors. I'm only going to be able to afford to run one video card, so I don't need SLI/Crossfire. I wouldn't be opposed to something with SLI support though.
Memory: DDR2 800 seems to be the favorite. 2 or 4 gigs? Anything else to consider?
Video Card: I've heard good things about the 8800GT but it seems that it would be the most expensive part of the build. Is there a cheaper but comparable part? I'm not a FPS maniac (I don't need Crisis at 1900x1200 or anything), but I'd like to have solid gaming performance. My monitor will be reused and is 17" and capable of 1280x1024.
Optical Drive: Is it worth splurging for a brand name DVD burner? Blu-ray?
Hard Drives: I'm not doing video editing or anything where I need Raptor like speeds. I have ~50 gigs of music (yay for my radio station job), and probably another 100 of films (I worked with our school production lab). How much could I expect to spend on a SATA drive of at least 300 usable space? Is it worth making a RAID array for extra data backup? I don't want to lose my music/schoolwork/pron collection

Other:
-Dual/multiple boot: I own spare licenses of XP SP2, Vista Home Premium. I'm not sure which I'd use. I'd also like to possibly try out Linux (I've heard good things about Ubuntu) as well as maybe OS X.
-Reuse keyboard/mouse/speakers/monitor (as noted before)
-To be built roughly 1 piece or $100 at a time. Starting with the less fluctuating parts like case, power supply, etc.
-Hope to complete construction sometime in May or early June.
The Prize
Yes that's right. I'm offering a prize. I don't have money to offer but I have the chance at fame. The winning contributor (to be decided by me) will be immortalized in the name of my new computer, joining the family of Homer, Wolfgang and Jimmy.
I have two pieces ordered:
Antec P182 case ($69)
Corsair HX620 ($109)
Go nuts!