I know you have your heart set on Windows 8 but, If you go with Windows 7 Home premium, you don't need DVD software as it comes with Windows Media Center that has the DVD codec installed (it's a $10 upgrade on Windows 8). Might save you a little, if the person your building it for does not care about Windows 8 (Windows 7 licensees are cheaper too)
Yea, I would go i5 or i7 if you can fit it but, the real question is if the person you building it for is into gaming on the PC, if so, then see if the budget could be upped a little, a better CPU, a better PSW and video card would make a world of difference if the user will be gaming. At least up the video card if there is a MAYBE there..
Lol I ran out and I was repairing a 10 year old PC. just wanted to get it running for a little, mixed together 75% toothpaste and 25% vasaline. Surprisingly works just as good as store bought compound! (though it isn't great to use for an extended period of time)
Dam, I'm sure it worked but, I have seen AMD chips with out heat sinks catch on fire, so that could be scary!!!!!
Not worth the risk on a modern CPU....still interesting..