Here are my two choices (budget is $700.00) should I get i7 now with one 5770 and get another 5770 later or get the amd 965 with 5850 now? Right now I am gaming on a 1440x900 monitor and will be upgrading to higher res in a few months. Also MSI p55 supports full x16 correct?
To start, you've got the wrong motherboard and RAM for the CPU. Do you mean the i7-860 or the i5-750 instead? Those are the LGA1156 socket CPU. The i7-920 is an LGA1366 socket. Typically, the board will cost you an additional $100, the RAM an extra $50 for the i7-920.
Second, P55 does not support full 16x in Crossfire.
I would go with the AMD build. The GPU is more important for gaming, and the 5770 might struggle with some games at higher resolutions.