Normally I'd suggest Core2Duo as I know a bit more about it than AM2 but there is no way to do it for the budget so I think this system is probably about as good as I can do.
Corsair 1GB DDR2 Value Select PC5300 Dual Channel Kit (2x512MB) (VS1GBKIT667D2) £34.99
(£41.11) £34.99
(£41.11)
Liteon DVD-8900 16x DVD±RW/RAM (Black) - OEM £13.99
(£16.44) £13.99
(£16.44)
Antec NSK4400 Mini Tower Case - 380W SmartPower PSU £39.99
(£46.99) £39.99
(£46.99)
Asrock ALiveSATA2-GLAN (Socket AM2) PCI-Express DDR2 Motherboard £34.99
(£41.11) £34.99
(£41.11)
OcUK GeForce 7600 GT 256MB GDDR3 TV-Out/DVI (PCI-Express) - Retail £56.99
(£66.96) £56.99
(£66.96)
AMD Athlon 64 X2 Dual Core 3800+ 2.00GHz (Socket AM2) - Retail £47.99
(£56.39) £47.99
(£56.39)
Hitachi Deskstar 7K160 NCQ 80GB SATA-II 8MB Cache - OEM £24.99
(£29.36) £24.99
(£29.36)
Sub Total : £253.93
Shipping cost assumes delivery to UK Mainland with:
City Link Parcel Next Day (Delivered Mon-Fri)
(This can be changed during checkout) Shipping : £10.95
Vat : £46.35
Total : £311.23