Take a look at my $700 PC in the Best Configs build, though It was made in early september.
I'd change it with a GTS 430, and a Athlon II X3 445 now, and if you need it, add a Wireless N card. Keep the 880G motherboard, 4 GB Ram and the 1 TB HDD. Maybe a 2 TB HD for more space. The cool wood case is optional
OS Drive & OS:
OCZ Vertex 2 OCZSSD3-2VTX120G 3.5" 120GB SATA II MLC Internal Solid State Drive (SSD)
Microsoft Windows 7 Home Premium 64-bit 1-Pack for System Builders - OEM http://www.newegg.com/Product/ComboDealDetails.aspx?Ite...
Combo Discount: -$20.00
Combo Price: $314.98
$30.00 Mail-In Rebate Card
Price After Mail-In Rebate(s): $284.98
Subtotal: $1,127.88 before $40 MIR + taxes & shipping