Not counting OS, I think $700 is easily enough. I created a test build a few weeks ago I call "sufferable," because it has the minimum level of parts I'd personally like to have, and it came in at $679. looking it over just now, I think some prices have changed a little, possibly a little lower overall.
Edit: I just made another pass through it, and it is now down to $647. There are three parts of this personal "sufferable" build with which many others will take issue. It "only" has a HD7770 in it, but includes a 128GB SSD, and the data drive is only 500GB. Those focused on games will readily forgo the SSD and put its $100 toward beefier graphics and a bigger PSU. Someone with lots of pics or video will want a bigger data drive. Some would point out that I could save $20 on the case, but I want front USB3.0 and some fans. I'd prefer some stronger parts too, but for my needs, this is what I'd consider "sufferable."
Intel Core i3-3240 Ivy Bridge 3.4GHz LGA 1155 55W Dual-Core Desktop Processor ...
Model #: BX80637i33240
Item #: N82E16819116773
$119.99 $119.99
GIGABYTE GV-R777OC-1GD Rev2.0 Radeon HD 7770 GHz Edition 1GB 128-bit GDDR5 PCI Express 3.0 x16 HDCP Ready CrossFireX Support ...
Model #: GV-R777OC-1GD Rev2.0
Item #: N82E16814125435
$99.99 $99.99
SAMSUNG 840 EVO MZ-7TE120BW 2.5" 120GB SATA III TLC Internal Solid State Drive (SSD)
Model #: MZ-7TE120BW
Item #: N82E16820147247
$99.99 $99.99
G.SKILL Value Series 8GB (2 x 4GB) 240-Pin DDR3 SDRAM DDR3 1333 (PC3 10600) Desktop Memory Model F3-10600CL9D-8GBNT
Model #: F3-10600CL9D-8GBNT
Item #: N82E16820231422
$69.99 $69.99
LITE-ON DVD Burner - Bulk Black SATA Model iHAS124-04 - OEM
Model #: iHAS124-04
Item #: N82E16827106289
$17.99 $17.99
Rosewill CHALLENGER-U3 Black Gaming ATX Mid Tower Computer Case ,comes with Three Fans-1x Front Blue LED 120mm Fan, 1x Top ...
Model #: CHALLENGER-U3
Item #: N82E16811147060
$69.99 -$10.00 Instant $59.99
ASRock H77 Pro4/MVP LGA 1155 Intel H77 HDMI SATA 6Gb/s USB 3.0 ATX Intel Motherboard
Model #: H77 Pro4/MVP
Item #: N82E16813157302
$79.99 -$5.00 Instant $74.99
Antec EarthWatts Green EA-380D Green 380W Continuous power ATX12V v2.3 / EPS12V 80 PLUS BRONZE Certified Active PFC Power ...
Model #: EA-380D Green
Item #: N82E16817371033
$59.99 -$15.00 Instant $44.99
Western Digital WD Blue WD5000AAKX 500GB 7200 RPM 16MB Cache SATA 6.0Gb/s 3.5" Internal Hard Drive Bare Drive - OEM
Model #: WD5000AAKX
Item #: N82E16822136769
$59.99 $59.99
Subtotal: $647.91 (Not counting a few promo codes currently in effect, but also not counting shipping and extortion)