I have almost that exact box and I use a swappable hard drive to change between OS. Mine is an ATI Radeon 9800 Pro (and don't you dare get a 9600 SE, 9600 or 9600 Pro are fine) and I will say the ATI drivers are a royal pain, of course I'm no expert either.
If you plan on doing anything fun, like ripping CDs, programming, or watching a DVD that box won't be overkill. Also the first time you want to recompile your kernel you'll be glad it only takes dinner time to do it. Install at least one game (UT 2004 comes to mind) if you are a game player, if not just get Tux Racer to work and you'll convince youself that the 3D works.
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