$750 home build vs modded $300 hp pavilion elite 400y

The situation is thus:
My current desktop is starting to show its age, I built it in 2003 (XP os, shuttle x pc case, Intel pentium 4 3.2Ghz, stock mobo, 250w psu, 2 gig ram, Nvidia 7600gs 512mb) Displayed on 32" Vizio HDtv at 1024x768 @60hz
A friend of mine has offered to sell me his modded Hp Pavilion Elite 400y (product number BT471AA) which is running an updated PSU ( I dont have the figures ) and an Nvidia 8500gt for $300.
I'm willing to invest around $750 on a new, home built system. Peripherals will be reused, already have a copy of windows 7 64 bit.

Priorities from greatest to least: Online Gaming (FPS, MMORPG, RTS), online video/web surfing (youtube, netflix), microsoft office type stuff.

I know there are hundreds if not thousands of threads on Tom's that have addressed this kind of issue, (I've read most of them) but as we all know the speed at which this technology progresses, becomes discounted, then redundent and as such, felt the need to re-address and explore my options. Thankfully, this site, and all of you with your vastly superior knowledge, exists.

Other requirements:
SLi or Crossfire: would be a nice option, room to grow and update is always an issue as i found out with the tiny shuttle x case

Vendors: Newegg is my primary source, but any reputable vendor will be aknowledged ( local is alright too) Washington, DC area.

OCing: Yes, I'll squeeze every drop of performance I can get from this budget.

Any advice will be greatly appreciated, even if it's just to gawk in amazement at my current PC or to tell me I'm daft for even considering an HP. If you can think of anything I may have left out, just let me know. Thanks in advance
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  1. Best answer
    PCPartPicker part list / Price breakdown by merchant / Benchmarks

    CPU: Intel Core i5-3570K 3.4GHz Quad-Core Processor ($214.99 @ Newegg)
    CPU Cooler: Cooler Master Hyper 212 EVO 82.9 CFM Sleeve Bearing CPU Cooler ($27.98 @ NCIX US)
    Motherboard: ASRock Z77 Extreme3 ATX LGA1155 Motherboard ($127.86 @ Newegg)
    Memory: Patriot Viper 3 8GB (2 x 4GB) DDR3-1600 Memory ($28.99 @ Newegg)
    Storage: Seagate Barracuda 500GB 3.5" 7200RPM Internal Hard Drive ($49.99 @ NCIX US)
    Video Card: HIS Radeon HD 7850 2GB Video Card ($179.99 @ Newegg)
    Case: Cooler Master Elite 370 ATX Mid Tower Case ($31.99 @ NCIX US)
    Power Supply: Corsair Builder 600W 80 PLUS Certified ATX12V Power Supply ($49.98 @ NCIX US)
    Optical Drive: Lite-On iHAS124-04 DVD/CD Writer ($15.99 @ SuperBiiz)
    Total: $727.76
    (Prices include shipping, taxes, and discounts when available.)
    (Generated by PCPartPicker 2012-09-21 07:27 EDT-0400)
  2. ScrewySqrl just built you a hell of a system for under $750 - go for it!
  3. That build will play everything you throw at it. If you want more graphic power the 7870 price dropped to $220 w/rebate.
  4. +1 to screwysqurl's build
  5. Best answer selected by Shakakhan420.
  6. Amazing build, everything I could want, i will consider the 7870. Thanks everybody for your time, and input. Great build ScrewySqrl!
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