Well, I couldn't really get him to budge on the video card, so he's going to get a better cpu and more ram.
Here is the final list, so, besides the video card, are there any other recommendations you can offer?
Video Card: XFX GeForce 7600GT $155
Processor: AMD Athlon 64 3800+ $168
Motherboard: MSI K8N Neo4-F $80
Memory: 2GB Corsair XMS (1GB x 2) $130
Hard Drive: Personal Preference $60
Disc Drive: DVD Burner $40
Case: Personal Preference $30
Power Supply: Antec SmartPower 2.0 500watts $60
Operating System: Windows XP Home OEM $80
Total: $813, includes shipping (where applicable)