I just built my Surly LHT that way. Bike swap meet season in San Diego netted a ton of parts. Shopped around for other parts. Ebay, nashbar, licktons. Ebayed some of the killer deals I got at the swap meet. Ended up with about $850 in the LHT, which would've been quite a bit more if built the traditional way. My buddy just picked up a Jamis Nova for $550 from Performance Bike and has swapped the essentials. Campy ergo levers, better derailleurs, seat and pedals. He's probably got $800 in it now.

Mark