If you are spending that much on a CPU, switch over to the Intel 2100/2120. PSU should be ok but if you want to drop down to a 500W you should be fine there as well. Seeing as that PSU is ~$60 I'm not sure how much you could save.
great quality system with good parts, better video card.. and that Intel CPU will smoke any AMD one, especially for gaming, at that price point
Very quality build. I agree that this would be the better way to go for the OP, but I would disagree with you on one thing. The processor. It is a complete waste to spend an extra $22 for a 100mhz clock increase and better integrated graphics when he is using a dedicated GPU.
I would pick the i3-2120 over the i3-2130 in this situation and use the difference to upgrade the board.
This will give you a nearly identical processor to the 2130 and will give you a much more upgradable board. The board is IVY compatable and is PCIe 3.0 compatable as well. Makes any future upgrades well worth the consideration.
Thanks for all the replies, I will probably be going with wasupmike's recommendation
except for maybe the CPU and perhaps the MOBO. I will probably go with the i3-2120
because of my budget. I now know this a very reliable computer forum to consult for all my future questions.