Doesn't look too bad...the only downside I see is that with the Core 2 Duos being released right now, you're upgradability is limited. That may not be a huge deal to you, but they are some sweet new processors.
It should be plenty powerful enough for 95% of everything unless you're doing some hardcore gaming.
I might keep away from the XP 64-bit bundled in there. While I use it, there's some incompatibilities with some apps that I find at the weirdest times. I'd stick with regular old Windows XP for now. Keep in mind the Windows Vista will come out in 6 months or so, and its the replacement for XP. You may want to factor that cost in.
It's a decent price, so I think you'll be good. Cool looking case too!