That's correct. You also run into problems trying to decide what parts to get, like hmmmmm this is only $50 more but it's alot better, so you end up getting the better hardware...lol I didn't even add the cost of a monitor to his total either, forgot about that, that will add an extra $150-$200. Would prob take closer to $1000 total IMO, but like I said, you will know that you have quality parts, AND excellent warranties. My MB has a lifetime warranty as well as my RAM modules. EVGA makes great boards that have awesome overclocking capabilities and their customer support is the best in the business IMO.
I tore down and re-built so many of these things over the past few years I guess I just assume that everyone knows exactly how to do it. Here is a pic of my rig I built a couple of years ago along with a vid to show the LED's. I spent a little over $1000 on it though.
[video=vimeo;18814996]http://vimeo.com/18814996[/video]