CPU:
Athlon XP 1800 or 1900 (prices on those are dropping through the floor right now.. around $110 and $140 respectively as of this writing.) P.S. Athlons
are superior to P4's
Mobo: Soyo Dragon Plus (most stable board I've ever worked with... and one of the fastest there is for Athlons right now) Loaded with features. For a cheaper solution, try the Gigabyte GA-7VTXH. The Soyo can be had for $130 or so, the Gigabyte for $100.
HDD: Maxtor 40GB (or whatever size) 7200 RPM Diamond Max Plus D740X. Make sure you get the D740X model. There is also a Diamond Max 40 and Diamond Max 60 (the 40 and 60 have nothing to do with the size) and they're not as good. (although still pretty decent) The 40GB can be had for $80.
If you're trying to stay low on the sound card, I would definitely try the Delta 44 (around $200). Or go up to the Delta 1010LT.
For CDR's I'd use Plextor (or Yamaha) but those both tend to be pretty pricey (though not as much these days). But for lower cost options, I've found the LiteOns to be very reliable.
I would never buy a computer preassembled. Especially from one of the big three. (Compaq, Dell, HP) I built my machine from the ground up for $950 and it smokes most anything you can get in the store these days. And that was back in Dec. Prices are even lower now. For example.. a friend of mine needed some parts to do similar things to what I'm doing, so I picked him up a SoyoDragon, Maxtor D740X 40GB, Athlon XP 1900, Windows XP Home, and a nice Heatsink all for $490. The great thing about customizing your own setup is that you can choose where to save money. Let's say you don't think you need that much space right away. Well, get the 20GB instead and save you some cash. Or you think
the Athlon XP 1600 will be powerful enough (and it is)... choose that instead and save money that way... etc. etc.
WATYF