The main things I use the computer for are Photoshop , music ,slideshows. I will be using it for editing home movies to put on disc. I assumed it would use a lot of my hard drive and memory.
You assumed correctly;
Photo editing requires a great amount of memory. A minimal of 512MB RAM is recommended. 1024MB RAM is no longer a luxury.
I have never done any type of video editing, but I am certain that this requires even more processing power than photo editing I can not tell for certain wheter the videocard plays a large role in video editing. A videocard with a large amount of video memory (256MB RAM is the maximal amount of video memory so far available) but with specifications that are far below
gamer cards may be an excellent choice if the videocard does indeed play a big role.. You should inquire a much more experienced person for information on this matter.
Also I have another 40 GB hard drive should I install that as slave or just buy onthat is bigger? I'm not sure how 2 hdd work, as one or seperate?
The amount of storage space depends heavily on what you wish to store. Raw format photos (before and after editing) take up quite a bit of Hard Disk Drive space. 80GB of storage space should be enough for most users.
You can easily mount the second Hard Disk Drive, assuming there is still room in your system case and you have got less than 4 IDE devices connected.
Take
electro-static discharge into account when working
inside the system case.
Do not buy additional hardware until the hardware you are currently using does not live up to your demands.