AMD Sempron 64 2500+ ~ 2500
Asus K8V-MX ~ 2850
Hynix 512MB DDR400 ~ 2150
Floppy Drive ~ 290
Seagate 80GB HDD ~ 2600
LiteOn 52X CD Writer ~ 1350
Samsung 17" Monitor ~ 5500
Altec Lansing AVS200 ~ 1200
Keyboard ~ 300
Optical Mouse ~ 375
Cabinet & PSU ~ 1000
Total ~ Rs. 20,115
- You ask why an AMD processor? Well, frankly the Semprons offer the best bang for the buck compared to the Pentium 4 procs. A P4 Proc would take up a major chunk of your 20K budget, forcing you to compromise on the rest of the system. Not to mention the Prescott based P4's heat up quite a bit, so you'd need serious cooling.
You dont really have to worry about thermal paste as such, the stock HSF comes with a small square bit of thermal paste already existing on it called a "thermal pad" - these are pretty decent, the Semprons exhibit pretty low temps as well. All you need to do is install the HSF. Moreover with the above Socket 754 based Semprons, you have the heatspreader as well an improved heatsink retention mechanism, so heatsink installation should be pretty hassle free.
- Board has onboard S3 UniChrome graphics. They're decent enough, but not exactly gaming level graphics. The LiteOn's also happen to be the OEM's for Sony CD-writers, so if you arent able to locate the LiteOn, you can always opt for the Sony. The Altec Lansing AVS200 speakers IMO are best bang for the buck at that price. Keyboard would be one of those Logitech "spill proof" keyboards, the Mouse would be a basic Logitech Optical model as well. As per the Cabinet, you'll have to make do with all the standard Zebronics/Mercury stuff. A 400W PSU should be fairly good enough to run it, the Semprons arent too demanding with power. If available in your area try for the Powersafe PSU's (though they would be more expensive)