There is no point going i7 for gaming if you use such a slow graphics card (relative to what the core i7 can keep up with). I would drop down to a core i5 and put the extra money into a 5850
I agree with Enzo, if you can find a 5850. Hopefully in a few months the supply will have caught up with demand. A pair of 5770s is an option if need is urgent.
^+1 to enzo and jbakerlent. Both did a good job. But enzo is right, an i5 and 5850 is a better deal compared to i7 860 and 5770
BTW, a quick neweeg search found me a CPU+RAM combo.