Looks fine to me and yeah any 5.25'' SATA internal optical drive should be fine.
Personally I'd get Windows 7 on the basis that it is designed for PC's and it's tried and tested. Windows 8 seems to be aimed towards the touch screen/tablet market and is still young so may suffer from incompatibility issues.
CPU: Intel Core i5-3450 3.1GHz Quad-Core Processor ($194.70 @ NCIX US)
CPU Cooler: Cooler Master Hyper 212 EVO 82.9 CFM Sleeve Bearing CPU Cooler ($24.99 @ Newegg)
Motherboard: Asus P8B75-V ATX LGA1155 Motherboard ($74.99 @ Newegg)
Memory: G.Skill Ares Series 8GB (2 x 4GB) DDR3-1600 Memory ($37.99 @ Newegg)
Storage: Crucial M4 128GB 2.5" Solid State Disk ($89.99 @ Microcenter)
Video Card: HIS Radeon HD 7870 2GB Video Card ($214.98 @ Newegg)
Case: NZXT Tempest 210 ATX Mid Tower Case ($64.98 @ Newegg)
Power Supply: Antec Neo Eco 520W 80 PLUS Certified ATX12V / EPS12V Power Supply ($58.98 @ Newegg)
Optical Drive: Lite-On iHAS124-04 DVD/CD Writer ($17.99 @ SuperBiiz)
Operating System: Microsoft Windows 7 Home Premium SP1 (64-bit) ($79.99 @ CompUSA)
(Prices include shipping, taxes, and discounts when available.)
(Generated by PCPartPicker 2012-11-28 16:08 EST-0500)
I wouldn't get a SSD right now. If you were spending 900-1000 I would recommend one. This is a good build, but it hits 900 with a SSD and the combination of an OS.
I would get rid of the SSD for right now unless the 900 is acceptable. I would get a 7950 honestly instead of a SSD. You will get better FPS in games, your loading times will be a little longer, but gameplay overall the SSD wont affect FPS.