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Gaming PC < $770 : Advices? [Warning: It's Lengthy]

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Hi, I'm seeking for advices to make a good gaming computer. It's my first time building a computer, so I don't know if this is a decent build or not. I've been doing some research around several sites and here is what I came up with:

-Basic Info-
Approximate Purchase Date: Within 5 days.
Budget Ranges: < $770. I will consider going over the budget, but not that greatly.
System Usage from Most to Least Important: Gaming, simple apps (e.g. ms words), and surfing webs.
Parts Not Required: Monitor, OS system, mouse, & keyboard
Preferred Website(s) for Parts: newegg
Country of Origin: United States
Parts Preferences: None, since I don't know much about good parts.
Overclocking: Yes
SLI or Crossfire: Maybe later on... when I get more money for another VGA
Monitor Resolution: 1600 x 900 pixels [HP 2009m]
Additional Comments: Would like to use it for a good 2~4 years, if possible.

-Specs-
CPU & PSU Combo: Intel core i5 2500K GHz 3.30 & CORSAIR TX650 V2 = $295
Wouldn't mind changing the cpu for a cheaper one, but I heard 2500k is the best one out there for gaming
CPU Fan: N/A
Planning to use the basic one included with the cpu box, but kind of worried the cpu might get overheated when I oc
Motherboard : ASRock P67 EXTREME4 (B3) LGA 1155 Intel P67 SATA 6Gb/s USB 3.0 ATX Intel Motherboard = 155
Just picked one rec from "hardware revolution" because there were too many motherboard to choose from
VGA: Galaxy GeForce GTX 465 (Fermi) = $130
I don't mind having a medium FPS for gaming, but is better to get Radeon HD 6850 or keep this?
RAM: G.Skill 4GB (2X2GB) DDR3 1600 = $37
HDD & DVD Burner: \Seagate 500GB 7200RPM SATA 6.0GB/s & LG dvd burner = $53
Should I just get a 1TB HDD and forget about the dvd burner? A dvd burner does sound nice, but I'm not sure if 500GB is worth more.
Case: Cool Master HAF 922 = $100
Really love the case design, but if there is a smaller case with similar features, I would consider changing.

That's it. It got quite lengthy, but if I could get some greatly detailed advises for improvement, then I think it's worth it. I would really like the best for my buck and appreciate any type of advices. Thanks in advance :) 

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Homebuilt system Master
Gaming Authority

Hello magician0091;

No glaring errors in your parts choice. It would all work together fine.

Your choice of case and PSU @ $170 is a very large chunk of your over all $770 budget.
-> CM HAF 912 Mid Tower Computer Case $55
-> XFX Core Edition PRO550W 550W PSU $70 ($50 a/r)
This combo would drop your case/PSU cost to $105 and let you put some of the savings into your GPU and a CPU cooler.

SAPPHIRE 100314-3L Radeon HD 6870 $175 ($155 a/r) free copy of Dirt3
CM Hyper 212 Plus CPU cooler $30

Best solution

Homebuilt system Authority

considering your budget, theres a good bit of spending imbalance here that is hurting your system. you can fit an i5-2500k in your budget, but i wouldnt make overclocking a priority, because the cpu isnt going to bottleneck this system at stock speeds. i would therefore stick with stock cooling for now, and get a cpu cooler later.
heres how i would do it:
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
http://www.newegg.com/Product/ComboDealDetails.aspx?Ite...
http://www.newegg.com/Product/ComboDealDetails.aspx?Ite...

this will be a foundation for a very powerful system (you can definitely overclock that graphics card, 900-950mhz should be no problem). it is SLI ready (except for the SLI bridge, which you can buy on ebay for $5-10), but i would upgrade the monitor before i considered SLI (the difference between a 20" 1600x900 and a 24" 1080p is astounding)
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With the expensive junkies gone, I can spend more on the VGA, but I have 4 in mind which is driving me lol.

Choices:
1. Sapphire 100314-3L Radeon HD 6870
Cheap VGA, which will allow me some space to get the Hyper 212 CPU cooler, but I can always get the cooler next time
2. EVGA 01G-P3-1561-AR GeForce GTX 560 Ti FPB (Fermi)
Seems very powerful with a lifetime warranty, which is very appealing
3. ZOTAC ZT-50303-10M GeForce GTX 560 Ti (Fermi)
Similar VGA choice 2, but it's cheaper by $20 (rebate will make it even, but trying to get rebate is a pain. Not that I totally dislike rebates)
4. ZOTAC AMP! ZT-50302-10M GeForce GTX 560 Ti
A monster that seemed to have been overclocked. Which is the most expensive one out of the 4 choices
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