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You could probably get rid of the 2nd HD. RAID will not give you any kind of performance increase that you can see on a regular basis. I'd just go with a larger single drive.
 

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at newegg you can get a 300+Gb HD for around 100]

edit: here
 

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Everything looks good, are you planning on spending more money down the road on another gig of memory? If not, there is a 2x1G kit of Gskill for $147, that I have seen do some good things.. You could probably save a little money on the PSU as well...
 
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