Help pick a cpu and video card

Well, you need CPU, GPU, and PSU:
CPU:Intel Core i5-2310 $180 Shipped @newegg.com
GPU:XFX 7770 GHz Edition $140 shipped ($125 w/rebate) @newegg.com
PSU:Antec NEO ECO 400W $53 shipped @newegg.com

http://pcpartpicker.com/p/c9cy

I chose the Intel Core i5 for its jump from dual to quad-cores and increase in L2 and L3 Cache, it should overclock slightly although it does not have an unlocked multiplier.
I followed Tom's advice according to Best Graphics Cards For The Money: July 2012, this video card should server your purposes without spending excess money for performance above your system's bottleneck.
In my book, Antec is a reputable company who makes top-notch stuff, this is a 400W continuous (meaning it can sustain 400W without harm). It has a single +12v rail that can supply 30A which should more than handle your CPU (TDP:95W) and GPU (TPD:85W) which the two main consumers of +12v power, it also has Active PFC, and a plethora of connectors with the exception of the power cord  

PCPartPicker part list / Price breakdown by merchant / Benchmarks

CPU: Intel Core i5-2500K 3.3GHz Quad-Core Processor ($219.99 @ Newegg)
CPU Cooler: Cooler Master Hyper 212 EVO 82.9 CFM Sleeve Bearing CPU Cooler ($29.99 @ Newegg)
Motherboard: ASRock Z68 Extreme3 Gen3 ATX LGA1155 Motherboard ($127.86 @ Newegg)
Memory: Crucial Ballistix sport 8GB (2 x 4GB) DDR3-1600 Memory ($45.99 @ Newegg)
Hard Drive: Western Digital Caviar Blue 500GB 3.5" 7200RPM Internal Hard Drive ($66.98 @ Newegg)
Video Card: Asus Radeon HD 6850 1GB Video Card ($157.55 @ Newegg)
Case: Antec Three Hundred ATX Mid Tower Case ($57.98 @ Newegg)
Power Supply: Corsair 430W ATX12V Power Supply ($24.99 @ Newegg)
Optical Drive: LG GH24NS90 DVD/CD Writer ($16.99 @ Newegg)
Total: $748.32
(Prices include shipping and discounts when available.)