Laser tracks better and usually more precisely, on a wider variety of surfaces that optical and also uses less power. Laser is definately the way to go. Trust make some nice mice that are comfortable to use and have decent performance.
Good choices on the graphics card front, the ATi 4870 is good bang for your buck value. Agreed on the RAM front, it's cheap enough but you just don't need it.
I'm awaiting a motherboard at the moment which will be here by Saturday, will post my system if I can remember. It isn't over the top in any way but fits in nicely with the rest of my kit.
It's cheap and fairly quick and also a very easy overclock. Mine's at 3GHz up from 2.4 stock on the original cooler. Overclockers.co.uk even sell them that are guaranteed to overclock to a certain speed.
Before buying a UPS, try a simple surge protected extension lead, it's a lot cheaper if it works. Here's a link to an article about surge protection so you can decide whether or not surge protection and UPS systems are the way you want to go: http://electronics.howstuffworks.com/surge-protector.htm
1080p isn't worth it on screen less than 42" really. I could find a graph or chart but don't really have the time lol. You would be better off spending the money on a nice 26-28" 720p and the monitor. You can get monitors with HDMI but DVI should also work with a converter cable or box.
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