Sounds like a decent system at reasonable price. Only 2 USB ports seems a little chintzy, but if it's got open PCI slots, you can always add more.
Just a suggestion: you might take a look at what's available at the Dell Outlet store. They're returned and refurbished systems that carry the full Dell warranty, often at considerably less than a new Dell system. About two weeks ago they had a big sale and I picked up the following system for under $800 including shipping:
Dell 4600 P4 3.06 GHz w/ 800MHz HT FSB
Windows XP Pro SP2
1 GB PC2700 Dual Channel DDR RAM
Integrated Intel Extreme Video & Audio
6 USB Ports, 10/100 Ethernet, Serial & Parallel Ports
250GB Western Digital SATA 7200 RPM Hard Drive
Floppy Drive
DVD ROM Drive
DVD+R/W Drive + WinDVD
Adobe Acrobat Elements 6.0
Paintshop Pro 4.0 (possibly a trial version?)
Dell 1-year Parts & Labor On-Site Warranty
One of the things I liked about this system is it didn't come preloaded with all kinds of trial software for AOL, Earthlink, etc. For another $50 I added an ATI Radeon 9000 AGP graphics adapter and for $15 more a 3-port Fireware PCI card. I already have a copy of Office XP Pro that I can move from my old machine to this one.
For a monitor, I bought a Princeton 19" LCD flat panel on eBay for $470 including shipping.
Hope you enjoy your new desktop, whatever you decide to buy! 
Bill V