1000w psu is indeed too much, even 850w psu is way overkill. Unless your planning to put that psu into future builds, I'd say go for something in the 550-650w, go for 750w if your planning for future sli/CF. As far as a 8320 vs 8350, the only difference is .5 ghz which can be overcome with just overclocking the 8320.
Well as for the FX8320, im simply getting it because I got a solid deal on it, 155 for the CPU and i only paid 140 for the mobo. So I doubt ill get a comparable deal via intel. I'll look into it though! Additionally for the 1000W PSU i got lucky on another deal and only paid 110 so should I keep that or save at most 10 bucks for a 750 watt TX series? Additioanlly, unless im mistaken, isn't gaming performance far more dependent upon the GPU and not the CPU? (potential eye-finity user here too Also to sweeten the deal, I got 4 games for free with this build so far too. Assasins Creed 3, Far Cry 3, Hitman Absolution, and Sleeping Dogs
155 what? I'm guessing that's USD or GBP? If it's the former then yeah that's a pretty decent deal. In £, not so much. As for GPU vs CPU, it's really down to the game. GTA4 and Flight Sim X are classic examples of games that couldn't give a damn what graphics card you have. Starcraft 2 also applies there. Other games are the opposite. And many games are reliant on both. But GPU is certainly the more important, just don't disregard CPU.
As for the PSU, it's generally recommended you don't get too much more than you'll need, for the sake of your energy bill. If your system is drawing 300 watts then a 1KW PSU will draw, say 600 watts, because it's well under load and therefore, less efficient. PSUs deliver their best efficiency towards load. A 500 watt PSU by comparison might only draw 350 watts at the wall to power that 300 watts of hardware, saving you 250 watts, or 2kWh of energy costs at 8 hours usage a day. The counter to that argument is that is you ever install dual GTX690s or something, you'll need to buy a new PSU and the PSU cost will be greater than the cost of the energy you saved. People have put a lot of thought into this stuff :-)
If you've already got then the question is moot. You have, so no point in changing now. Have you already got all this and are just asking? If so you could have saved yourself some grief and asked this first before you started buying. $110 might be a good deal on a 1kW PSU, but as sam attempted to point out you could end up costing yourself in the long run. I would rather get a gold rated 750W PSU for $100 then a bronze 1kW for $110. (even if they were the same price I'd still get the gold.)
For most games the GPU does matter more. But as I tried to show in my posts above why "settle" for 80FPS when something else can get more? Add in the better power numbers for Intel and the gains that can be had by OCing and the i5s look even better.