Spec seems fine and should run everything you need.
One thing though. Rather than a single 1 TB HDD go for two smaller drives.
i.e. a 160 gb 'c' drive which you can just use as the boot drive with windows etc on it and a 640 gb 'f' drive for all your music / video stuff. This will keep your boot drive clean and tidy.
If you are intending to put all your family vid's and photos on it do you have an external back up drive or some other method of backup in mind? It would be a good idea to consider one if you don't have one already.