Ok, I'm looking at downgrading the RAM, CPU, and possibly the power supply.
I've read great things about the Corsair PSUs. Will the 520 watt be sufficient even with the 8800GTX? I could save a decent chunk of change by not getting the 620 watt.
So basically swap the E6850 for the E6600, downgrade to 2 gigs of ram, and then downgrade to the 520 watt PSU. Then add the 8800GTX. That would probably put me close to my $1200 goal.