Here is the build, trying to keep it under 1000.00.

Cooler Master RC-690
http://www.newegg.com/Product/Prod [...] 6811119137

Gigabyte GA-P35
http://www.newegg.com/Product/Prod [...] 6813128059

Intel Core2 Duo
http://www.newegg.com/Product/Prod [...] 6819115028

4gb G-Skill DDR2 1066
http://www.newegg.com/Product/Prod [...] 6820231166

EVGA 8800gt
http://www.newegg.com/Product/Prod [...] 6814130318

250GB Seagate HD
http://www.newegg.com/Product/Prod [...] 6822148262

This also includes Vista Ultimate 64bit with SP1. Final tally is roughly 940.00

This will be primarily a gaming machine. How does it look? I didn't list and dvd/cd combo drive as I can pick it up later. Am I ready to hit the buy button? Should I get some more case fans since the RC-690 has alot of space for them? Also, is it crucial that I by Arctic silver? I never done it before and I am a bit nervous about using it.

You selected good components, so here's some thoughts :

CPU : consider this 45nm : http://www.newegg.com/Product/Prod [...] 6819115037 (new 45nm, runs cooler, overclocks better).

For basic cooling any thermal paste will do (most coolers come with a batch or some paste preapplied) so you don't have to buy Arctic Silver but make sure you use some paste when you build. On that note what CPU cooler will you be using. The stock one is rubish. Consider the XIGMATEK HDT-1283 for ~$40 on newegg.
http://www.newegg.com/Product/Prod [...] bhdt-s1283

The 250GB drive is good and cheap but it's from the previous generation.
Make sure you pick one of the 7200.11 series like this http://www.newegg.com/Product/Prod [...] 6822148316

If you want a bit more space and performance go for WD6400AAKS (good value at $115 on newegg and has excellent performance - research it if you want).
Make sure your DVDRW drive is SATA (if you decide to buy one).

CASE : No need to buy extra case fans. See how this performs and decide if you need more. Your selection is pretty standard and won't run too hot.

Graphics : You might also check out an 8800 GTS (around ~$225). It has a bit better performance and better cooling than the 8800GT.

PSU : make sure you have a 450W or more quality unit. If not check out the Corsair VX 550W at www.buy.com for $70.

Good luck

I agree with Andrius on all points.

The GA-P35-DS3L is a good motherboard, but it has an awful lot of limitations. The part about only 4 SATA ports is the most painful, IMO.
$50 more buys you something much nicer:
ABIT IP35 Pro LGA 775 Intel P35 ATX Intel Motherboard - Retail
http://www.newegg.com/Product/Prod [...] 6813127030

I just noticed I forgot to comment the RAM.
If you won't overclock beyond say 450MHz FSB (that would put you beyond 4GHz) the RAM you're getting is overpriced. This is close for overclocking ability but costs $60 less:
http://www.newegg.com/Product/Prod [...] 6820231145
You can also pick a cheaper 800MHz DDR2 kit and overclock it a bit.
My Geil modules run stable at 4-4-4-12 upto 848MHz on my quadcore.

Thanks alot guys. I actually cancelled my order after reading the responses. I re-ordered and changed out the ram, HD, cpu, and gfx from everyone's suggestions. Actually saved some money and got a better machine. I am thinking about getting that heatsink that was mentioned. I only hope it will fit in my case.

If I get it, will you guys give me some pointers on how to overclock it? Back in the day, I would just up the speed in the bios and wouldnt care if I messed things up, but now I want to do things right. Or perhaps there is a guide to overclocking here on toms articles. I also decided to keep that gigabyte mobo.

Thanks!

That looks like a great mid-range system. I only hope you went with a 45nm cpu, they run much cooler and are more efficient.

Make sure and tell us what you got.

Will do! I did not realize after canceling my first order that it would take 3-5 days for my newegg preferred account to clear the old charge before I can place another order! Looks like I will be placing this order this weekend/early next week. But I think its worth it. I was stoked about having it this week due to my wife being out of town. Oh well