Okay, looks like it needs some changes, from a gamer's perspective.
It's a proven fact that AMD dishes out better performance than Intel in gaming - the only reason you should get an Intel is if you're going to do a lot of multitasking and word program stuff, otherwise AMD is your best bet.
I'd seriously look at revamping your system. You have a good budget, but your line up could do with some work.
I'd say start with a Pci-express motherboard. AGP is being phased out so it's not very upgradable. Also, why cheap out on the base of your system?
I'd say go with the MSI K8N Neo4-F at least. I have one and love it.
Next the CPU. Almost any AMD nowadays would be good for gaming (atleast most socket 939's), so you don't need to be too picky here. You were going to get an Intel for 235$, which would probably perform worse than a 160$ AMD 3200 in gaming. But for the money, you could get an AMD 3700 which is 224$ on Newegg and only 208$ on zipzoomfly.com.
Next, the Video card. This part is crucial in gaming performance. And holy smokes, you were going to get a card for 409$ whereas the 7800GT is much better for 100$ less. So I'd say go with the evga 7800GT. (304$, 284$ after rebates)
Now for the memory. Sure, you can go for the memory you listed if you'd like, it's probably the best bet for 2Gigs. But you don't need that much for most games if you aren't a hardcore gamer. So in this case, I'd say go with some Corsair Valueselect 1Gig. It performs similar to all other ram, unless you're going to overclock. If not, go with the Corsair value select. Lifetime Warranty
Everything else looks great, man. Good Hdd, case, etc. You don't really need a cpu cooler, but if you'd like to get one (or if you're going to overclock), then this one would do nicely.
Hope this helps, I urge you to stay clear of the video card you posted and the processor, you'll find the alternatives are much better and, in this case, cheaper.
Hope you have fun building it.