Have you considered opting for an i7 930? It may be more appropriate considering some of your system usages and could most definitely be done with your budget. But for now, I'll give you my 2 cents on your current build.
The 140w chip you have selected is an older stepping for the 965. The 125w version is cheaper, and the c3 stepping is revised to be more energy efficient while having the same performance. There's plenty of anecdotal/tested reviews regarding the newer stepping being able to overclock better. http://www.newegg.com/Product/Product.aspx?Item=N82E168...
Your mobo choice is great, but also consider newer tech. A few 890gx boards are now available with native sata 6gbps/usb 3.0. Of course, you'll have to sacrifice running CFX on dual x16; but really, most conclusions regarding the difference between dual x8 and dual x16 runs at about a 2-5% decrease (depending on reviewer), which is not much.
Also, I don't recommend crossfiring from the start of a new build. You lose an important "future proofing" utility, which is the ability to upgrade in a future date when you need more GPU power. Instead, you could pick up a 5870, which should be in that price range (save for maybe $20 more)
The only Thermaltake PSU I would trust in my system is a Toughpower. Not sure if you picked that unit b/c of the price, but considering how energy efficient the 5xxx are, you could drop down to a trusted 750w PSU and still run CFX.
I've worked with the h20-220 and my client and I approved, so I can't say its a horrible investment. But if you wanted to go with an i7 build, this would probably be where I'd cut from to fit budget, while picking up a high end HSF (venomous x, nh d-14, titan fenrir). You could always save up and form your own WC system from better EK/DD parts if you so desired If you do end up getting the Swiftech kit, I would invest in a better vga waterblock. The acrylic on that unit is extremely thin and is prone to cracking.
You can go for HD 5850 or HD 5870 card instead of cross firing at the earliest!! Plus your budget is high too.. Surely u must have HD 5800 series card, not a 128 bit card!!
8GB RAM is a bit too much! 4 (2x2GB) is more than enough now! You can spend those extra $110 on other things! No need to say the memory prices are atrocious now a days! So play on with the 4GB for a few months and install additional RAMs (if needed) when the prices go down!
Isn't it better to hybrid sli so called cross fire than single gpu?
You may be a bit confused. "Hybrid SLI" is a different topic altogether and I think you may just be thinking of SLI. Just to cover the basics, SLI is Nvidia's term used to describe 2 (or more) GPUs used as a single output. CrossfireX is is the term ATI uses to describe this same thing. So, SLI = nvidia, Crossfire/CFX = ATI (AMD). Thus as in the case of your 5770s, the correct terminology would be "crossfire".
Yes, a crossfire configuration of 2 same cards will outform 1 of the SAME card. 2x 5770 is better than a single 5770. HOWEVER, the advice most of us are giving is for you to buy a single BETTER card. You'll see similar/better performances between crossfired 5770 and a single 5870 or 5970. By buying a single 5870/5970 now, you can get another one in the future and crossfire that. Getting 5770 off the bat for a new build just limits what you can upgrade GPU-wise, in the future.
It would, for instance, be better for your system longevity if you were to buy a single 5870 (now) rather than two 5850s because, in 18 months, that 2nd 5870 will cost half as much as it does today, and you can add it to an empty slot ... giving you 2x5870s ... respect!
... Conversely ... IF you got TWO 5850s now ... then you would have to chuck them both out , in 18 months, when "3D-FeelAround" becomes all the rage, and they just can't quite cut it.
= Hmmmm ?? =
( but, in 3 years ? ... neural implants ... nVidia, of course! )