An affordable but fast Photoshop machine?

Encouraged by the great threads here on building one's own PC (thanks again Steve and others) rather than ordering something overpriced from Dell, I asked my local computer store to design a good bang-for-the-buck Photoshop machine. (This never would have dawned on me were it not for the discussions here.) Here's what the owner proposed to order and assemble for about USD$1750, which is about all I can afford. I have an external Maxtor 300 GB hard drive that i would add to the system.

CasEdge TS-01 mid tower case (black/silver)
Enermax FMAII 535W dual fan power supply
ASUS P5WD2E-P mainboard
Intel Core2Duo E6400 CPU
Coolermaster Hyper L3 CPU cooler
Crucial 2GB DDR2-800 Ballistix memory kit
MSI nVidia 7600GT 256MB PCI-E video card
Western Digital 250GB SATA2 16MB 7200rpm hard drive
Vantec all-in-one internal memory card reader (black)
LG H10N 16x DL DVD+ -RW drive (black)
Microsoft or Logitech basic keyboard & optical wheel mouse bundle (black)
Microsoft Windows XP Home (oem)

I welcome any comments on how well these components mesh with one another and whether a few extra dollars on one or two pieces would yield a substantially better machine. I'm also interested in this configuration's ability to be moderately overclocked.

Many thanks in advance.

Bill