I still need to cut about $100. Where??? I could have him install the Windows 7 RC instead of the retail version but that will be a hassle to reformat in a couple months when it expires. Another option is to trim the Video Card/LCD but that seems harsh. He's mostly interested in playing Starcraft 2 when that comes out, so nothing extreme.
Purchased the parts last night before I saw your post. It's going to come out under $1100, which I think is pretty good for i5. I would've switched out the motherboard for the Gigabyte one that I didn't know existed, but I don't think it will matter that much. Thanks though!