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Building gaming rig - help

Last response: in Systems
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Hi everyone,
This will be my first try and building a gaming computer, and I'm hoping to keep it at or around $700 (including tax and stuff) and wondering if it'll all work out.
I already have a PSU, case, and optical drive.
I need a GPU, CPU, Mobo, HDD, RAM and the OS.
The OS will be Windows 7 home premium for $100
My preferred GPU is Nvidia, preferred CPU is Intel. I'd like the Mobo to be SLI ready, in case I want to buy another card in the future.
Here's what I'm thinking so far:

GTX 560 Ti 1Gb- $175
http://www.tigerdirect.ca/applications/searchtools/item-details.aspEdpNo=7168004&pagenumber=6&RSort=1&csid=ITD&recordsPerPage=5&body=REVIEWS#CustomerReviewsBlock


Intel i5 2500 - $189 after rebate
http://www.tigerdirect.ca/applications/SearchTools/item-details.asp?EdpNo=7073162&CatId=6988

Intel 13 2120 - $129
http://www.tigerdirect.ca/applications/SearchTools/item-details.asp?EdpNo=7295299&CatId=6983

Here I can't decide which processor to get. Will it be worth it to upgrade to the 2500? I don't plan on overclocking so I don't need the 2500k. I'm really not sure how much of a difference the hyperthreading 2 cores vs having 4 cores will make in gaming, which is what I want to use this for primarily. I know that the 2500 is slightly faster, but would it be an upgrade that's worth the 60 bucks? And with ivy bridge coming out, will these CPUs get a nice price drop?
EDIT: If I were to drop to the i3 and put the 60 dollars towards a gtx570, would that be a smarter thing to do?


EVGA 120-SB-E682-KR - Micro ATX, SLI ready, up to 2133MHz - $99 after rebate
http://www.tigerdirect.ca/applications/SearchTools/item-details.asp?EdpNo=1125852&CatId=6975

Western Digital 1TB drive - $99
http://www.tigerdirect.ca/applications/SearchTools/item-details.asp?EdpNo=2128458&CatId=2459

I'm look at 1TB because I'll most likely be storing both multimedia and games on the HDD, until I have the cash to get an external and put the media on that.

Corsair 8Gb @ 1600MHz- $49 after rebate
http://www.tigerdirect.ca/applications/searchtools/item-details.asp?EdpNo=7025810&pagenumber=1&RSort=1&csid=ITD&recordsPerPage=5&body=REVIEWS#CustomerReviewsBlock

Any comments, questions, or suggestions are welcome, as I'm new at this and it's still in the works. Feedback is greatly appreciated!

Thanks

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Homebuilt system Master
Gaming Expert

YES.. Spend the money for the i5. The i3 is a dual core, quad core is the way to go. Games don't quite yet use more than 2 cores, but they are slowly coming around to doing so. An i3 with hyperthreading cannot compete with 4 real physical cores. If you don't want to overclock, then you can spend a little less for an i5 2400 or even a 2300 and it would be a better investment. Even Phenom IIs pound i3s running software that calls more than 2 cores into play.

As far as ivy bridge making sandy bridge prices drop, don't count on it.
 
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