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The actual building is not the hard part. Sometimes installing the CPU fan/heat-sink or running the cabling inside the case and making sure you have good airflow can get a little squirrelly, but it's not hard. It just requires patience and attention to detail.
The difficult part is knowing what you need, what is compatible with what, and whether the individual parts you're purchasing are garbage. I still have trouble with power supplies, for example, because it's hard to find reviews of a PS unless it is one of the ultra-expensive ones, and I am not intimate enough with the language of the rating label to understand it what it all means. As another example, you need to know whether you can use SATA drives and whether the motherboard you get requires an AGP or PCI-E graphics card. Once you've climbed the learning curve, found all your parts and collected them, it's relatively simple to piece it all together.
FWIW, whether building your own system is cheaper is a bit relative. Dell, for example, has a system minus the monitor they offer sometimes for $299, WinXP included. They're able to do this because they sell advertising on that system in the form of pre-installed AOL software, BroadJump adware, etc. and because they can sell the OS license less expensively than an individual can purchase one. The system itself is functional but mostly crap with very little in the way of room for upgrades, and I would not recommend one to anybody. However, if bottom-dollar is the main concern, it is probably cheaper than anything you can put together yourself.
The first step is figuring out what you want the computer to do, i.e. whether it is to be used primarily for e-mail and web browsing or whether the owner wants to be able to play the latest games or render his or her own DVDs without having to wait three days. You also want to decide where you want to be on the upgradeability scale. That is, when/if you decide to upgrade your graphics, do you want to be able just to purchase a new graphics card and plug it in, or, to keep costs down now, will you be willing in the future to get a new motherboard if that is required. It'll be the same thing with the processor. To keep costs down now, you may decide to go with a 32 bit processor. However, if you do so, you will have to purchase a new motherboard if you decide to upgrade the processor later.
All in all, the advantages of building your own system are numerous and the disadvantages easily surmountable if you're willing to do a little research. In this forum several of us have assisted others in building their own systems, so if you need help, you know where to ask.
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