New build, please help optimize

Please help me optimize the build I am putting together. I am mainly concerned about getting the best combination of motherboard and cpu. Any and all comments and suggestions are welcome!

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APPROXIMATE PURCHASE DATE: this month BUDGET RANGE: $750~$1000

SYSTEM USAGE FROM MOST TO LEAST IMPORTANT: Gaming (not a hardcore gamer), movies, internet

PARTS NOT REQUIRED: keyboard, mouse, speakers, monitor, optical drive

PREFERRED WEBSITE(S) FOR PARTS: newegg.com

PARTS PREFERENCES: Intel, ATI, quality brands

OVERCLOCKING: Probably no SLI OR CROSSFIRE: Probably no

MONITOR RESOLUTION: Not sure, have a 21.5 inch monitor. Suggest a resolution?

ADDITIONAL COMMENTS: Not interested in any AMD (even Phenom) or intel i7. Would like to stick with an intel duo. Would like to have an ATI card. Would like to have a card that makes good use of the quality of my monitor. I don't mind spending more for quality parts, as long as they don't stray too far from my preferences. Please note I chose my hard drive based on its RPM's, not its capacity. Do RPM's really make much of a difference though? I just want my main OS drive to be the highest quality possible without breaking the bank. First time builder.

Also, I am uncertain if I will need a CPU cooler and thermal compound if I will probably not be overclocking. Please advise, thank you.

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Case: Combo Price: $104.94 (combo w/ power supply)
Antec Three Hundred Black Steel ATX Mid Tower Computer Case - Retail

Power Supply: Combo Price: $104.94 (combo w/ case)
Antec EA650 650W Continuous Power ATX12V Ver.2.2 / EPS12V version 2.91 SLI Certified CrossFire Ready 80 PLUS Certified Active PFC Power Supply - Retail

Motherboard: $109.99
GIGABYTE GA-EP45-UD3R LGA 775 Intel P45 ATX Intel Motherboard - Retail

CPU: $167.99
Intel Core 2 Duo E8400 Wolfdale 3.0GHz LGA 775 65W Dual-Core Processor Model BX80570E8400 - Retail

CPU Cooler: $0.00
???

RAM: $49.99
mushkin 4GB (2 x 2GB) 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400) Dual Channel Kit Desktop Memory Model 996587 - Retail

Hard Drive: $79.99
Western Digital Raptor WD740ADFD 74GB 10000 RPM SATA 1.5Gb/s 3.5" Internal Hard Drive - OEM

Graphics Card: $179.99
SAPPHIRE 100259-1GL Radeon HD 4870 1GB 256-bit GDDR5 PCI Express 2.0 x16 HDCP Ready CrossFire Supported Video Card - Retail

Monitor: $0.00 (already own)
ASUS VH226H Black 21.5" 2ms(GTG) HDMI Widescreen LCD Monitor - Retail

TOTAL: (after shipping)
$717.48

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Thanks for reading!

Thank you very much for the speedy reply! I'm off to work right now, but I'll look into what you recommended and post a revised build later in the evening. Thanks again!

use a Q9550 or Q8400 instead of that E8500, dual cores are old news.

or look at the $1000 i7 build as that will last a bit longer.

Thanks for the quick reply! I don't mind much spending the extra cash for a quad core, they just don't seem to be much of an improvement over the duo. I noticed the E8500 has a ton of good reviews, but the quads you mention do also.

I might go with a quad, I guess there's no real downside other than the improvement over the duos might not be that much right?

Thanks again for the help!