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Power supply might be a little weak.
What model LG burner?
I'd get a smaller system drive (used for nothing but Windows and programs), use the 500 for a Project/Scratch drive, break out the 2TB into separate drives and use them for Media and Exports.
For editing, I'd go with Vista Home Basic. It leaves out a lot of things unneeded for editing, making a smaller, lighter OS.
Thanks Jim...the power supply is defintily going to be upgraded but the 2TB drive is actually two 1TB drives. The system drive is that big because you really don't save any money by going with a smaller drive.
Would this CPU be your choice also?
It would be the CPU of my choice.
I understand the 2TB drive is actually two 1TB drives. What I was suggesting was to split them apart. Don't get them in a RAID.
As for the smaller system drive, it's less about saving money than it is about efficiency. Ideally you should put nothing on the system drive but Windows and programs, nothing else. 500GB will be a waste. (For example, mine is 75GB and is less than half full.) That's why I recommend the smaller System drive and use the 500GB for Projects/Scratch.