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@Fox
Depends what you want it to do. You don't need to spend that much on memory or a motherboard, but you'd be better off spending more on a processor.
Back in October I spent £60 on memory (16Gb of fast DDR3), £60 on a motherboard and £160 on a processor because I wanted a decent one.
You don't need to spend that much on a power supply either, although I did because I wanted the most efficient one I could get.
I buy from wherever's cheapest basically, unless they seem dodgy. There are plenty of sites who are now big and have good prices but you've probably never heard of (e.g. Ballicom). Never had a problem.