The case I'm getting for it will be a mid tower, the OS will be windows 7 pro 64 bit. As for a dvd burner I might just buy a used one locally. So is this a good set up? Will there e heat/bottleneck concerns?
And aside from 1080p movies. I plan to play games such as Dragon age 2, Black ops call of duty, gta IV , left 4 dead 2, WoW, Civ 5. With this build can I play at them at 1600, or 1900 resolution with mid to high settings?
Kawee's build there is solid, and will give you significantly better performance than the build you mentioned, while in the same price range.
I just ordered that 260, and I can understand the allure at the price point, but if you can spring the extra cash, the 6850 is significantly better. If you want to save some money, though, personally I would stick with the GTX 260 over the 6770, even though it is older.