I am trying to keep the cost around $2000. I also have monitor, keyboard, mouse, disc player to buy. Would that be possible? Also, what are the benefits to going sandy bridge or ivy bridge, as opposed to what I have? Is my CPU not adequate?
The build I just recommended costs about 1200. You have more than enough for the peripherals you want. Your CPU is too much. Gaming does not require hyperthreading which the i7's have (and is why they are more expensive). Also, you can get an SSD as a boot drive. Crucial m4 128 Gb for about 130 bucks.