Personally, I would never skimp on the PSU, it's usually the last thing on my list that gets cut. Here is a list of PSU tiers, 3 and up should suit you fine.
Agree with Jake on the CPU considering the programs you're using but you said it costs too much.
For the RAM, you can get away with 800mhz sticks unless you're doing some crazy overclocking. Would also suggest getting 4gb if budget allows.
Lastly, concerning the LCD, you said you wanted to game and do some design work. If you're serious about both of them professionally, I would stick with a CRT. 99% of 22" LCDs are made from TN panels which result in colour banding and diminished viewing angles. Other sizes have more options of panels(PVA/MVA/IPS) which solve the banding/viewing angle issues but also introduce input lag and generally a lot more expensive.
