1. What should I go for as a CPU in the 3GHz range (AMD/INTEL version and speed)Seeing as this system will have to last you quite a while I am inclined to recommend
Core 2 Quad Q9550 2.8Ghz (1333FSB 12MB) R 1,945 excl. R 2,217 incl.
2. 2X2 GB DDR2 800? (Since I am using XP 32 bit?)
I would still get 2x2GB sticks now even if you're only using XP 32bit. The price difference is negligible:
OCZ PC2-6400 DDR2 4GB Plat XTC 2x2GB Kit - CL 5-4-4-15, 1.9 - 2.
[OCZ2P8004GK] R635.01
3. What should I look for in a Motherboard.(brand, specs)
Some nice P45 board should do:
P5Q ASUS Intel P45, LGA775, 1600FSB, 4xDual DDR2 1200, 1x PCI-x16 , 2xPCI-x1, 3xPCI, 1xATA133, 6xSATAII, 2x eSATA, Gbe Lan, 8ch-Sound, Max 12xUSB, 2x IEEE1394, ATX R 1,205 excl. R 1,373 incl.
4. What would be a good choose of 1TB hard drive.
Seagates are apparently fine now since they have moved onto the new 7200.12 drives:
1TB-7200RPM 32MB Cache SATA II (Seagate) R 726 excl. R 827 incl.
5. Should I go for extra cooling (fans).
And Extra fan/two won't kill you
6. What make and model case would you go for if you were looking for a sturdy, non-flashy tower with both front and back usb ports and additional cooling options, preferably black?
Bought one of these recently and it's quite nice:
Coolermaster Gladiator Gamers Case - No PSU R 499 excl. R 568 incl.
There are MANY alternatives of course.
And PSUs:
The Corsairs are very nice and excellent quality but they are pricey. I of course like the OCZ PSU's quite a lot as well. The one you suggested as well as the OCZ 550W modular fatality series which can be had for about R900.
So Total so far:
R6521 (Don't think Ive missed anything)
This is quite a nice speced PC for a very reasonable price.