Hey sorry I took so long to reply. These are the parts I have came up with.
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E4300 Allendale 1.8GHz ($130ish in March)
Gigabyte GA-965P-S3 ($118)
CORSAIR XMS2 1GB (2 x 512MB) DDR2 800 ($110)
W.Digital Caviar SE WD800JD 80GB SATA 7200 RPM ($43)
SONY Black 16X DVD-ROM 48X CD-ROM IDE ($20)
OS [XP Home or MCE] ($100)
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That still leaves a Case/PSU and Video Card. The budget for the remaining components (including shipping) is $200. Case looks are somewhat important to me but quality comes first. If anyone has any suggestions Id really apperciate them.