Need advice on computer for photo and video editing

I do mostly routine stuff on my home computer (word processing, e-mails, internet, etc), except for photo and video editing (hobby, not professional)
I'm upgrading my 4 year old set up, as it has 2 GB ram, dual core vs quad core, 256mb video card, etc, etc.  Better to buy a new rig than upgrade several different components.
Costco has a pretty nice set up in the store (HPE 257 c-b), but for an extra $200, I can order online and get the HPE 170t, which is essentially the same except for 2 upgrades:
-Radeon HD 5770 video card vs Radeon HD 5570
-Two 1 TB 7200 hard drives vs one 1 TB 7200 hard drive
My question is this.....is it worth the extra $200 to get the better graphics card and the dual hard drive set up?  Will it really make that much of a difference in the performance?  I'm thinking it will, especially the ability to set up the 2nd hard drive as my scratch disk.
For what it's worth, both systems have the i7 860, 8 GB ram, and Windows Home Premium 64 bit.
Thanks.

In very general terms, the requirements for Video will exceed those for Photoshop (PS). If you are looking at PrPro CS5, then the video card WILL make a difference, and PS CS5 now takes advantage of the video card, than before.
For PS, the minimum HDD setup would be a 2x system with physical (not partitions) HDD's. Video has more requirements in this area, and I would say that a 3x setup is the minimum. Do read Harm's linked article, as it is the best that I have ever run across.
For the PS setup, just locate the Scratch Disks for PS on your extra HDD's, the ones with your Project and PrPro Scratch Disks.
Enjoy the new computer, and welcome to the forum,
Hunt

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