Here's my "honest schtick" about AMD vs INTEL.
Currently, you will find better Performance/Cost in the low end with AMD.
You can pick up an AMD 754 Athlon 64 3200+ for around half a benjamin, and the motherboard to match it for as little as 40$ (a decent one at that.. it had onboard video and audio from ECS in the micro-atx spec). Pair this with a gig or two of DDR-400 (which is technically faster than ddr2-533 as ddr2 runs higher latency) again, for bargain basement prices then apply a cheap ATi card (the 1950pro, a rather powerful card for games, retails in the sub 200$ range) and a cheap case (40$ for a nice coolermaster) and you have a powerful gaming rig capable of playing the latest games without a hitch. Just stick in a 250gb WD HDD (about 80$) and you have plenty of storage as well. The internal sound isn't top notch, but it's clean and simple to use, as well as supporting EAX 3.0 , 7.1, and Optical out. This system also supports firewire and USB, as well as having decent overclocking capabilities.
I built almost this exact system for a friend. The only difference being I gave him my old (well, new, i warrentied it then never used the new card) X800XTPE which is equivalent to a 1950pro without the 3.0PS support that card has. I found the install Easy as the unit was a micro-atx and the case sized for ATX/BTX, with the proper standoffs for the smaller boards. In addition the system runs cool with only a single 120mm fan (i plugged the side vent and rear non-fan vent from the inside with black tape for best airflow, although i'm sure it'd work fine otherwise. and perfectly stable on a 300watt PSU that was 2 years old. I did have to mod the psu outputs to work with the SATA drive using a modular cable stolen from a dead Ultra X2 500w psu I had. But if you buy a new psu you won't have that problem. Decent enough ones can be had for under half a c-bill again (30-50$)
We found this system to run Insurgency (graphics heavy Source mod, very intensive on your pc) at 1440x900 at almost 40fps with everything enabled, IQ settings on quality on the card. He has OC'd the processor from 2.2 to 2.45ghz. IT benches just over an fx-53 and just under a 4000+, comparison intel chip is a P4e running at 3.6ghz. This chip is not dual core, but the majority of applications cannot take effective advange (especially games) of a dual core processor at the moment. The chip is 64bit native, however.