AMD or Intel CPU

get a cytrix, no just kidding.

i myself love amd but i currently will only consider intel for a gaming computer. they always win in fps and often by large percentages. ive seen up to 30% gains at the same price range. with a dedicated GPU that is.

Unless you plan on overclocking don't bother with a k series processor, and if you do keep it then add in a CPU cooler (would do this for both builds). You also can't overclock on that motherboard anyways (need a Z77) so unless you want to spend more downgrade the processor a bit.

For the GPU I highly recommend the 7870 for just a bit more (or at least a good brand if you stick with a 7850).
7850- http://pcpartpicker.com/part/msi-video-card-r7850twinfr...
7870-http://pcpartpicker.com/part/sapphire-video-card-100354...

a k series cpu doesnt cost much more. even if you dont plan on overclocking now i would get one anyway for when your computer is reaching its end of life. instantly tacking on 30 percent or higher better performance will help it live a bit longer.

I've recommended the same thing (with only a $5 difference) but his motherboard isn't even capable of overclocking and he's already at his limit.

Get a PhII 965BE and and HD7950

AMD is not that bad anymore
http://www.youtube.com/watch?v=4et7kDGSRfc
and for those saying that it loses performance because it still uses pcie gen 2
http://www.hardocp.com/article/2012/07/18/pci_express_2...

It is just that AMD CPU limits your GPU to NVIDIA GPUs or AMD's mid tier GPUs because AMD GPU needs a stronger single thread CPU which intel has

Also OC does not even do that much work anymore, it is more for benchmarks and SLI/CFX to not bottleneck. If overclocking anything, the main priority is the GPU and that is where you would get more FPS.

PCPartPicker part list / Price breakdown by merchant / Benchmarks

CPU: AMD FX-6300 3.5GHz 6-Core Processor ($129.99 @ Amazon)
Motherboard: ASRock 970 Extreme3 ATX AM3+ Motherboard ($79.98 @ Outlet PC)
Memory: Crucial Ballistix Sport 8GB (2 x 4GB) DDR3-1600 Memory ($43.99 @ Newegg)
Storage: Western Digital Caviar Blue 500GB 3.5" 7200RPM Internal Hard Drive ($49.98 @ Outlet PC)
Video Card: Sapphire Radeon HD 7870 GHz Edition 2GB Video Card ($209.99 @ Newegg)
Case: Cooler Master HAF 912 ATX Mid Tower Case ($39.99 @ Newegg)
Power Supply: XFX ProSeries 450W 80 PLUS Bronze Certified ATX12V / EPS12V Power Supply ($57.98 @ SuperBiiz)
Optical Drive: Samsung SH-224BB DVD/CD Writer ($15.98 @ Outlet PC)
Operating System: Microsoft Windows 7 Home Premium SP1 (OEM) (64-bit) ($89.98 @ Outlet PC)
Total: $717.86
(Prices include shipping, taxes, and discounts when available.)
(Generated by PCPartPicker 2013-02-09 12:31 EST-0500)

this is going with AMD and getting a stronger GPU which should means more performance vs the intel build

Overclocking does not help anymore now I've heard it all

Will i see a big differnce in the 7870 ghz edition or would it be fine to stay with a 7850. Also is the PSU strong enough, woudn't ir be better to go with a 500w corsair builder for 10 dollars less

the XFX PSU is better quality than the CX series also gives a stable 12v rail that the CX does not have

this is also a pretty good PSU
http://pcpartpicker.com/part/antec-power-supply-hcg400
for a bit cheaper but it comes pretty close to the requirement so you cant go crazy with overclocking

AMD Phenom II X4 965 Black Edition Deneb: $85 with code EMCYTZT2907

Gigabyte GA-970A-UD3 AM3+: $100

yea this way is also a great option, i would get it the CPU that i put inside