How much video editing and photoshop do you do? I recommended the i7 for the video editing mostly as it is faster verse a i5, from what I understand photoshop doesn't always make use of HT. The ram I know is beneficial in Photoshop and I think will help with the video editing. RAM is pretty cheap right now, so even more reason to do it IMO.
In terms of gaming you won't notice any difference in having more ram or an i7.
Windows I'm sure you will be all set with just home premium. Do you have any programs from XP that don't work on 7?
Due to not overclocking 550W is all you need. System probably will be at most 350W during full load.
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