He may want better graphics since I presume he wants to play games with good graphics? Well--I think he can get a cheaper graphics if he really wants a graphics card instead of on-board.
I suggest the 7200GS and I think the 7600GT is having a sale, but might cost a bit more.
Exclude what I said above, but what is this system for again? Normal usage.. as in--writing documents, playing music, play non-hard core games--I would think the build is okay, but I could be biased on the products since I usually get the same brands.
Are you planning to overclock it as well? And the only thing that costs a lot of your bugdet is just like what wire has said. I'm not sure, but to me, Vista is not even really needed unless you're playing some DX10 games? But that's what I know about it, so I don't know much. Your power supply seems to be over above--not knowing the company--but I assume it has good amps? But I would suggest not overclocking micro-boards though, unless someone has done it already. Micro boards are very annoying, so you should know that everything you are buying can fit into it. I am sure there are a few better motherboards, as in ATX with prices around there too. Since you are not using dual-core, I assume you're not going to do much with it? But dual-core can be lasted for a long while for now, even if technology continues. But it all depends on what you do.