I for one don't recommend skimping on parts for your machine. That £20 you save on a motherboard, RAM array or hard drive could well mean a legion of issues in future. They will get in your way, and you will notice them.
Frankly, if you're going to be using a computer all day, every day, you need to make sensible choices about the hardware you rely upon, and don't be scared of paying a little extra for the reliability. Ideally, you'd custom build your OS too (presumably using Yoper Linux, sorry, GNU/Linux), but that's a matter for another time.
* RAM leaks will cause poor reliability and instability
* poor hard drives will slow your machine to a halt, as it's the time taken reading from a disc that provides the main bottleneck for most computers
* a lack of caching (RAM) will mean the hard drive will need to be used post-boot more often, which again radically reduces overall performance.
* poor cooling will reduce the lifespan and general performance of your machine. The fact remains, silicon wafers like to be cool. Conductors in general like to be cool. When they are not cool, they do not conduct. You cannot maintain performance when hot.
Personally, I'd use a small SSD to boot from, perhaps using an external drive / USB flash for the relatively small 'personal' files and a secondary hard drive to keep vids / games on. Depending on the OS, I'd research the optimum RAM use to cache my five most oft-used applications, and have my OS precache in this manner (easier with Linux IF I MIGHT INTERJECT FOR A MOMENT...)