$600 Upgrade - Is this the best for the money?

Greetings, I am upgrading a friend's computer. Here are the details:

APPROXIMATE PURCHASE DATE: 2-3 weeks from now

BUDGET RANGE: ~$600 before rebates

SYSTEM USAGE FROM MOST TO LEAST IMPORTANT: Gaming is definitely the most important. After that, some video editing.

PARTS NOT REQUIRED: Keyboard, mouse, monitor, speakers, OS, case, hard drives, dvd drive, power supply (Silverstone Zeus 650 Watts).

PREFERRED WEBSITE(S) FOR PARTS: No preference. Whatever is cheapest. I should mention that I have to pay tax when ordering from newegg, so that adds 9.25% or something like that.

COUNTRY OF ORIGIN: USA

PARTS PREFERENCES: Best for the money.

OVERCLOCKING: No

SLI OR CROSSFIRE: No

MONITOR RESOLUTION: 1680x1050

ADDITIONAL COMMENTS: As you can see, all I require is MOBO, CPU, GPU, RAM

And here is something I've come up with (I'm using newegg because they've the best site):

GIGABYTE GA-EP45-UD3P - $135

EVGA 896-P3-1255-AR GeForce GTX 260 Core 216 - $190

Intel Core 2 Duo E8500 - $190

G.SKILL 4GB (2 x 2GB) DDR2 800 - $95

TOTAL: $610

Is this the best to be had for $600? I'd like to have an i5 and a 5850. However, if I went for i5, I'd have to get a cheaper GPU; if I went for a 5850, I'd have to get a cheaper CPU, correct?

Like I mentioned above, it doesn't have to be from newegg. Their website is the easiest to navigate, so I always use theirs for organizing wish lists and such.

Thanks

Thanks for the suggestions. I've been thinking. What about getting the i5-750 and a cheaper GPU (say 9600GT) and then upgrading to a beastly GPU about 6 months from now?

If gaming is your priority, then put max $$$ into the video card.
An AMD X3 720 or a propus 620 will work just fine for very little money.
Go cheap on the cpu and moderate on the motherboard.
An AMD 5xxx card will give you the best results. Buy the best on you can afford.

At 1680x1050 the video card will sail through at frame rates better than you can detect flaws in.
The cpu (620/720) will do just fine.
Later more cpu power can be added cheaply.

Good points. Considering the 620 Propus is half the price of the i5, I may be able to go with a 5850. What are some good motherboards for AM3? I haven't been keeping up with chipsets for AMD motherboards.

Sorry I missed that. So, would you recommend the 620 or the 720? The 720 has one less core, but is clocked higher. Then again, you can get a dual core in the 3+ GHz range for even cheaper (which is indeed what I did in my first post).

Yeah, the Phenom II X2 550 is clocked at 3.1 GHz and it's $102 on the egg.