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I'm buying a new PC next week - having it built by a company nearby
I'm considering going up to 32gb of ram
I'm having a 3.3ghz six core amd, 2gb gaming gfx, 16gb ram, 1 tb HD, 24" led monitor and 2.1 surround sound for £458 so would be rude not to ramp it up to 32gb of ram if you ask me
Ditto. I've just completed a Photoshop build and I went straight for 32GB. Rationale? It's so cheap at the moment, why not? Less than £100, and it is more future proof.
As for the monitor, I agree with most of what's been said - if you have a £1200 budget for a Photoshop build, spend at least £400 on the monitor. It is the single most important piece of equipment for you. You don't need an i7, and you certainly don't need a Geforce 650 - who cares if an operation takes 2.3 or 2.8 seconds? What really matters is how it looks on screen.
I urge you to find the small bit of extra desk space for the Dell U2711 - the jump in resolution and quality is well worth the money.