First Timer Gaming System - Please Help

http://www.newegg.com/Product/Prod [...] 6827136153 (LG 22x DVD/CD RW Light Scribe)

http://www.newegg.com/Product/Prod [...] 6811129042 (Antec 300 Steel Case)

http://www.newegg.com/Product/Prod [...] 6822148274 (Seagate Barracuda 1 TB 7200.11 RPM HD)

http://www.newegg.com/Product/Prod [...] 6814130400 (EVGA 260 Core 216 SC Video Card)

http://www.newegg.com/Product/Prod [...] 6820145184 (Corsair 2x2 GB Memory)

http://www.newegg.com/Product/Prod [...] 6813128359 (Gigabyte EP45 UD3R Motherboard)

http://www.newegg.com/Product/Prod [...] 6819115036 (Intel Core 2 Duo 3.16 Ghz E8500 Wolfdale Processor)

http://www.newegg.com/Product/Prod [...] 6835186134 (Arctic Cooling Freezer 7 Pro 92mm CPU Cooler)

http://us.creative.com/products/pr [...] 7359&nav=1 (Creative X-Fi XtremeGamer Sound Card)


Here's the deal. This is what I have roughly decided on so far. I have been doing as much research as I can with little to no understanding of computers (to start with anyway). If there are any problems with my rig, please inform me.

-I need to know what Power Supply I need or should get.
-Good deals on Mouse and Keyboard.
-Good deal on a good LCD monitor.
-Good deal on a sound system.

So far, my system costs $880. I didn't plan on spending this much, but I want a system that will last me a long while and play the latest games well. I am not very well off in terms of money, so take that into consideration please. Thank you everyone.

EDIT: This computer will be used by 3-5 people (I am building this computer for my little brothers and sisters as well as myself), and they are all gamers or movie watchers... Which is why I have the 1 TB hard drive, if that is overkill still, please tell me. All advice appreciated.

I am not very good at interpreting what monitor is good for what. What size and specs should I try to look for in a monitor and sound system? And what brand of power supply should I go for?

EDIT:
-Should I go for a 750TX Corsair or 650TX Corsair PSU?
-I am going with the 22" Acer.
-I might go with a G.Skill 2x2 Pi Black DDR2 800 RAM instead of the Corsair.
-I am getting Windows Home Vista 64 Bit for $100.

My total is now reaching 1300 with shipping costs. I am BEGGING people to help me bring this price down. If you say I don't need certain things, I can take it out. I am thinking about cutting my 1TB in half... Thought?

and the on board sound on the mobo is more than sufficient