It won't have any FPS issues per say but i'm willing to bet the graphics card will be pretty poor for gaming - you'll still probably be ok for LFS (although AA might not work too well), but it seems pointless paying the same amount of cash for inferior kit...
For LFS (and for LFS ONLY!):
CPU (# of cores irrelevant - you want the most CPU power you can get - i.e. look for a Pentium Dual Core, or a better Core 2 CPU - this is the number one thing holding PC's back at full grids)
Graphics card (a decent graphics card helps you to crank the options such as AA / AF up - typically a store-bought PC has a rubbish graphics card with way to much vRAM that doesn't help in any way).
RAM, HDD size etc aren't really important.
For a good PC you want a MINIMUM of 2GB of RAM (if not more), the HDD size depends on what you'll be using it for (although you may as well get a HDD bigger than 250GB).
Just for reference (and i'm NOT suggesting you do this), heres what your budget could get you:
Add the £89.99 20" TFT and your looking at £426.50 for a fairly decent gaming PC - you'd have to find your own OS admitedly, but i'd use the free Windows 7 Beta and just buy the OEM Windows 7 Home Premium when it comes out...
EDIT - Or, for my ultra-crazy idea - buy a laptop with a properly smashed screen, plug an extra monitor, keyboard & mouse in and job done - An HP TX (the tablet one) with a Turion, 2GB of RAM and an 8600M GT sold for £100 with a smashed screen - costs about £200 (if not more) to fix on a laptop worth £300 so no point - not gonna be stellar but you could barely even throw together a PC with a Celeron in it for £100!
The comet pc has a ATI radeon 3440 or something along those lines i didnt have a pen at the time and not a very good memory. im guessing thats not a good GFX card for gaming?
Nice idea Jack, but I'd think it'd be easier to simply take the HD from his old PC and do a reformat from that...
Buying a new PC and using Windows 7 (Which I don't think you can get anymore, anyway) wouldn't be a good idea. Besides, you'd need to burn it to a disk and it would be a ass-pain.
Just buy a cheap XP CD from a mate or from Ebay or somewhere.. Vista isn't really worth getting.
3440? Never heard of it - Probably not going to be that good.
What's your budget, and does it have to be from a shop or are you comfortable buying from the internet?
Do you need a screen or keyboard / mouse?
EDIT - I'm sure you can still get it, if not then M$ have actually released very few keys but given out lots of duplicates so i'm sure someone could get him a CD :P
If burning and then running a disk is a pain god help you trying to install an OS :X
XP off eBay is A. Dodgy and B. Not cheap. Vista costs no more than XP (if you get XP Pro vs Vista Home Premium), but then if your going for Vista you may as well get Vista2- i mean, err, Windows 7.
Reformatting his current PC's HDD would work, but what if he's got a slow-ass 80GB IDE HDD?
My budget is mainly £400 but i will be allowed to spend no more than £430 im comfortable buying from the internet as i got my current laptop off of the net i do need keyboard,screen and mouse
Basically the PSU takes the power from the wall and converts it to the right voltages etc the PC components can actually used. You need a decent PSU, but what you need depends on your PC's spec - a cheap one can be dangerous, though, as it could blow up and take other components with it.
If they are building the PC for you - don't bother with the PSU upgrades - if it doesn't work then THEY have to fix it (warranties ftw).