More like 800-1000, that's giving you a bit of leverage. I'd say 900 is a good price or 950$.
Prices have dropped dramatically. The reason being that chip once valued @ 280$ can be beat by a 180$ i5 2400. And a 230$ 2500K can kill it in everything especially OC.
That PSU is not the best, not junk but defiantly lacks the efficiency of an 80+ Brnz/Silver/Gold XFX/Corsair ETC I didn't mention.
5850 CF are good, but here you will see the scaling is defiantly not as good as the current 68xx/69xx/67xx series cards. http://www.anandtech.com/bench/Product/303?vs=302
Just so you know the 6850 is cheaper, more power efficient and OC's very well as well as staying cool. Not to say the 5850 is bad. I have one myself, it's just aged.