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I'd say from my recent experience, either new, or 2nd hand complete in the exact spec you want and confident it all works - so buy in person and test-ride with knowledge of how everything should work.
My plan for a bargainous build is maybe £150 over budget, and not far off the cost of a £1000 C2W bike (once you remove tax)
but once I've repaired or replaced the front brake it will be all Deore and up with decent wheels and forks on an 853 Dialled frame
Here's some comedy for you all if you want to hear the trials and tribulations of someone who has built a lot of bikes, but never a MTB:
The Zees should arrive today or tomorrow and I will then have less than a week to get the bike to a shop to change the BB (I don't have a GXP spanner or HTii tools), fit the cranks, and setup and bleed the front brake, and shorten the hose on the rear brake. If I can get that done before next Friday, I will then throw the bike into the back of my car to go see @furious_tiles with @cake and @Frank and ride BPW next weekend. On an untested bike...
I miss riding a BMX