Whoops did not realize that he lived in Australia. Good Idea then...lol
I would look for a set of CL7 1600 Ram that is cheap at that store you can usually get them for close to the same price as the cl9's that you picked out.
Also If you wanted to save a little bit of money you could go with an I5-750 instead cause it does not look like you will need the 860 and you would get just as much performance gaming from the 750 as the 860.
Definitely go with an i5-750 instead of the i7-860. The i5 doesn't have hyperthreading, but that's really only useful for intense number-crunching type tasks, and doesn't really do anything for gaming.
playing games, surfing the net or watching a video as the main tasks of my pc does that really warrant the price of the I7 CPU for my needs. What is hyperthreading actually used for. And would i notice the difference if all were clocked at the same speed eg 3.0ghz?
Hyperthreading is typically used to provide additional logical cores for applications that can use multiple cores effectively. Things like Photoshop, video editing programs, audio editing programs, CAD, etc. For your stated usage, I'd go with an i5-750 at most, an AMD Phenom x3 or x4 is more likely to provide you extra room in your budget for a good video card.