That's my first suggestion.
It goes over budget by 33$ but can play pretty much all modern games, most at high settings.
The monitor is a 22" 1920x1080 monitor with a very very low pixel pitch. (.248) meaning that this monitor has amazing PPI(Pixels per inch) giving it great clarity and quality.
The Phenom II X2 550, has the potential to be unlocked on this motherboard and could potentially become a Phenom II X4 B50 quad core.
It has 4Gb of DDR3 gaming grade RAM, low voltage, decent latency, high frequency. It's good for overclocking.
The PSU is good. The case is amazing.
I'd stake any reputation I have on the case.
And the Hard drive is the samsung spinpoint f3 500gb
Newegg is out of stock, so I found one on ewiz for the same price, also Amazon is selling them right now I believe as well.
I'll try to make a second build that stays underneath the 700$ budget completely, but I won't lie, it's not easy lol.