This is going to be a semi-lengthy post, so if you don't want to read all of it (though I'd suggest it
) I'm going to include a summary of what to look for at the end, then you can build from that.
Personally, I'd change a couple things from Word, but it's more of a preference choices. Well except for one thing (2 technically) that is...
I'd HIGHLY recommend getting the Intel Core 2 Duo vs the AMD. The prices for their mid-range models (which blow AMDs out of the water) are about right in your price range. You'll also need a different mobo though since an AMD mobo wont support a Intel CPU. Although I actually don't see a mobo in Word's list...
The other thing is that I personally like ATI Graphic cards over nVidia, however i'd agree in getting a 512meg at least. You can probably find a decent higher end one (closer to the 8800 nVidia or 1900 series for Radeon) for under 200, and it'd definitely be worth it imo.
Whether you get the extra sound card and nic is totally up to you though... Some people swear up and down that letting your mobo handle them is absolutely terrible for gaming and performance, but you know it wont matter that much if you have a fairly powerful PC anyways. Plus, unless you have a surround sound system for your PC getting surround sound card/support is fairly worthless. Although I suppose you will get a little better sound/ping with not running it off you're mobo... but again I personally don't think it's that big a deal.
I'd agree with the 2gigs of ram, and high wattage PSU. I also fully agree with the xp over vista if you can find it. Vista just seems very hit or miss to me right now with online gaming and such. Plus, all of it's extra "security" is more of a way to frustrate users then protect them.
Also, I find the price for most of xoxide's stuff to be overpriced, so before you buy from them make sure you check other stores. I would also suggest, although this is by no means necessary and wont really help with LotRO, getting a PhysX card if you plan on playing other games on your PC. Not many games use it fully atm, but more and more games plan to use it and it (supposedly) really helps performance on games with it enabled. All it does is just handle the the physics in games basically, rather then your CPU/GPU. So explosions look better, more things move around, etc.
To summarize system specs...
At least 2gig CPU, with Intel Core 2 Duo being highly recommended personally
2gigs DDR2 ram (3 or 4 would be better, but 2 is fine)
512 meg PCI-E video card
SATA HD
Mobo that can handle all that
500+ Watt PSU
You'll probably also want a few extra/more powerful fans for things like your CPU and case, and something like Arctic Silver 5 thermal compound for the CPU to hsf.