If I am not mistaken you were looking at a CPU that cost about $320? WHY ON EARTH WOULD YOU NOT GET THE E6600?!? It has been clearly shown that the core2duo's out perform AMD in virtually everything. Here is my suggestion list:
CPU: Intel Core 2 Duo E6600 - $316
Easily OC up to 3.4+Ghz and kick the crap out of dual core FX60's from AMD.
Case with included PSU: Antec Performance TX Black ATX Mid tower computer case with an included Antec 500W PSU (Antec makes excellent PSUs) - $129.99
Excellent large computer case and powerful PSU.
Mobo: ASUS P5B Deluxe/WiFi-AP LGA 775 Intel P965 Express ATX Intel Motherboard - $194.99
Powerful and energy efficient, good airflow/access and easy to OC
Ram: Patriot eXtreme Performance 2GB (2 x 1GB) 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400) - $254.99 with a $50 mail-in rebate so total of $204.99
Decent timings, decent speed, low price, good reviews.
Video Card: EVGA GeForce 7950 GT 512MB KO SuperClocked - $285.99 with a $20 mail-in rebate so total of $265.99
Great card, play any current game on high settings and will make future games playable for years to come. Good compromise between price/performance.
HD similar to what you were lookin at and what other people suggest, a few 250gig decent Sata's hooked up in raid 0
Optical drives it doesn't really matter just grab a couple that have decent ratings on NewEgg
OS: Could be very low price if you have compromised values like me
or buy XP (Vista is still too buggy until they have their service pack come out).
Total price = $1,181.96 before rebates, so a grand total of: $1,111.96 after rebates which leaves you with 318.04 for HD's/Optical Drives. You had said you were ok with another 100 if needed so about $400 left for that stuff.
EDIT: you are wrong about the memory on the vidcard not making much difference. it is definitely worth the $40