Are you stuck on Intel? If so, that is fine, but you could go with a phenom ii x4 and save some $$ there and get a better GPU such as a 5850 or 5870. I think you would gain more performance from a better GPU and an AMD than you would from that GPU and an i7.
Comparison of an i7 940 and a 965 x4. This assumes the same GPU, and as you can see the 3d applications and games are for the most part pretty close. Throw in a much better GPU on the 965, and I think you would have superior performance in the AMD!