I am finally, at last, upgrading my P3 1Ghz. 
Max Budget: ~600 USD
I've been doing my fair share of research on what to buy, and I'm fairly convinced, considering what we expect to happen in the next year or so, that a P4 2.8C is my best "bang for buck" option right now.
The reason it seems to win out over the A64 is that it has better all-around performance (I don't just use my computer for 1st person shooters), and it is actually cheaper. It also has dual-channel memory, whereas I understand that the A64 does not.
But then I hear about this AMD XP Mobile 2500+ which overclocks quite nicely. Now, I'm not an experienced overclocker but I don't think I'd have any trouble doing it. I've done some overclocking before and have a lot of resources available.
The XP Mobile works out a little cheaper than the P4 2.8C system too. Even though when all is said and done, even overclocked it will not always be as fast as the 2.8C, I do save some money. This could be important since I intend another upgrade in about a year.
With all that in mind, and considering that no matter what I buy I'll need a new Motherboard and new RAM, what do you more experienced and helpful hardware enthusiasts recommend for me?
Some things to keep in mind:
I don't know what kind of RAM to get. RAM has changed so much since I last looked at it, and the variety and price spreads are enormous now.
I plan on using the Zalman ALCU cooling unit. The affordable water coolers aren't any better (in fact they are worse) than the Zalman, and the better water cooling kits seem very expensive.
Thanks so much. This is my last stop on my upgrading journey.

Max Budget: ~600 USD
I've been doing my fair share of research on what to buy, and I'm fairly convinced, considering what we expect to happen in the next year or so, that a P4 2.8C is my best "bang for buck" option right now.
The reason it seems to win out over the A64 is that it has better all-around performance (I don't just use my computer for 1st person shooters), and it is actually cheaper. It also has dual-channel memory, whereas I understand that the A64 does not.
But then I hear about this AMD XP Mobile 2500+ which overclocks quite nicely. Now, I'm not an experienced overclocker but I don't think I'd have any trouble doing it. I've done some overclocking before and have a lot of resources available.
The XP Mobile works out a little cheaper than the P4 2.8C system too. Even though when all is said and done, even overclocked it will not always be as fast as the 2.8C, I do save some money. This could be important since I intend another upgrade in about a year.
With all that in mind, and considering that no matter what I buy I'll need a new Motherboard and new RAM, what do you more experienced and helpful hardware enthusiasts recommend for me?
Some things to keep in mind:
I don't know what kind of RAM to get. RAM has changed so much since I last looked at it, and the variety and price spreads are enormous now.
I plan on using the Zalman ALCU cooling unit. The affordable water coolers aren't any better (in fact they are worse) than the Zalman, and the better water cooling kits seem very expensive.
Thanks so much. This is my last stop on my upgrading journey.