Based on what you claim you will be using it for you don't even need an i3 processor of any kind. You could get away with a Sandy Bridge Pentium G620 2.6GHz ($63.99), G630 2.7GHz ($67.99), G640 2.8GHz ($78.99), G850 2.9GHz or G860 3.0GHz ($89.99). These are equivalent to the i3-2xxx series chips except they lack hyperthreading & nothing you mentioned you will be using your PC for requires much processing power whatsoever so you wouldn't even notice the lack of hyperythreading. You could save anywhere from $22 to $60 here.
You also don't need 8GB of ram to watch videos, browse the web or use paint. You could get away with 2GB easily under windows 7 32 bit or 4GB for 64 bit to be safe. That's another $15 or so savings.
Btw, I got my prices from newegg. And in case you hadn't noticed the hard drive in your build is intended for a laptop so you'd need a conversion kit to get it into most towers. And since it doesn't appear you need much storage space you could even get just a 60GB SSD with a conversion kit for just a few dollars more, not that you need the speed for anything you are doing based on what I've already explained but it will make booting and copying/pasting/loading of things ridiculously faster than a laptop drive.
Mushkin Enhanced Chronos 60GB SSD w/ adapter $67.99
http://www.newegg.com/Product/Product.aspx?Item=N82E16820226247
or
OCZ Agility 3 90GB SSD for a bit more storage space $79.99 but requires bracket adapter
http://www.newegg.com/Product/Product.aspx?Item=N82E16820227757.
You could take my advice and get these parts + SSD for about the same price or less than what you originally mocked up. An SSD gives you a much zippier feeling experience to any computer.
Also you do not have a PSU listed in your build and the case does not come with one. You don't need much power at all for this machine. Something in the 350W range would be sufficient and can be had from name brands such as Antec, FSP or Seasonic for the $30-$50 range.