Looking to build my own 1st time - need parts help on $700 budget

OK so I'm completely new at this but I've wanted to build my own PC for a long time and I feel that now I have a good grasp on how to do it. I'm a mechanically oriented person and if I can ever do something to save some money and really learn about what I'm building with some effort I always do it myself. Now it's time to try it on my comp.

I know I'd prefer an Intel Core 2 Duo E6600 so it'll last me for a few years before I have to upgrade - I have no intention of messing around and overclocking it as of now though I may in the future if and when I get more comfortable.

My *preferences* though I'll listen to anything you smarter people have to say or recommend:
Case: size doesn't matter as long as it's roomy enough for future upgrades and looks pretty good. You couldn't recommend one that was too big.
Hard Drive: bigger is better, I was thinking 320 - 500GB
Optical Drive: normal multi DVD+-RW
Video Card - I was thinking something in the 256MB range like the 8600GT? Not really sure here.
Motherboard - no clue, this is what confuses me the most
RAM - 2GB for a lot of reasons

I'm looking for a compatible parts list for everything except a monitor and OS that would preferably go around $700 or less. If the E6600 and it's compatible parts aren't feasible with my budget is there another CPU, like the Athlon x2 series or a less powerful Core 2 Duo, you would recommend? I normally don't ask for help on anything but I've been doing so much reading that everything is starting to blur, you know what I mean?

Some notes - I only plan on casual gaming if any at all on this. I do do a bit of video-editing but I have another PC I can use for that if it would shoot up the costs on this one. This PC will primarily be for everyday home use and watching and storing DVD and MP3 files.

The maximum I can go up to is $850 but that would only be if absolutely necessary as I'm spending a small fortune on a seriously kick *** monitor. This is a huge help and I really appreciate any advice you can give me.

This turned out to be longer than I expected but I hope you can figure out what I was trying to say.
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More about looking build time parts budget
  1. Okay maybe this will work
    CPU: $205
    e6750 solid and cheaper, but still good!
    GPU: $166 - $40 MIR
    x1950pro good solid performer. Can put in 8800gts, but will have to drop down on CPU to afford it.
    PSU: $67
    Antec 500W Good and clean basiq PSU
    Memory: $80
    2gigs of GSkill DDR2 800mHz
    Mobo: $101
    Gigabyte DS3L Solid OC'ing board. Good all around board.
    Case: $50 - $10 MIR
    Cooler Master Centurion 5 Nice simple Case and good price
    DVD Burner: $40 You pick which one, most are good enough

    Total build w/shipping: $699.97 - $50 in MIR's = 649.97!!! Nice deal all from newegg.
  2. lunyone gave you a really nice set up. that is one really good system right there. You forgot to add a hard Drive to his budget
    Seagate Barracuda 7200.10 ST3320620AS (Perpendicular Recording Technology) 320GB ::::$79.99
    With that you would be at $730 after MIR's.
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