It all will work together. I would get a E8400 tho and the GPU might be over kill if your on a 19" monitor. That GPU will be grate for a 22" If you have a 19" you could get by with a 4850. Gl with your build!!! maybe some others have some input
Just because you're on a smaller monitor, does not mean you can get away with a lower end GPU. All it means is that you will get higher frame rates at higher resolutions. Drop the card down too low, and you will start getting shi**y frame rates at lower resolutions as well.