the rest of your options look fine. On the video card, you should take a look at your monitor resolution. Many benchmarks are done in the 1900x resolution range. If you have a monitor in the 1600x range then you can go with a lower level vid card and still get max performance in games. Of course, if you have a larger monitor, then that may require you to invest a bit more in the video card to sustain desirable video performance levels.
Here is another case suggestion as well - I'm simply a fan of Antec, good quality and good service.
Thank you for all the input you all haven given. I really appreciate it. One question i have is. Why does everyone suggest to go with an I3 CPU? Are AMD really bad or something? I dont know what Sandy Bridge is either.
AMD isn't bad, its just that Intel's Sandy Bridge architecture (sandy bridge is just the name of their current cpu architecture) tends to top the charts. Going with an I3 can give you the same performance at a similar price as the AMD, but with the option to upgrade to an i5-2500 later (or an i7 if it suits your needs) - as opposed to not having an upgrade path.