BlackKAT--Doesn't the Arctic Cooler come pre-applied with MX-2, which is actually better than Silver 5? Correct me if I'm wrong.
I would also recommend a cheaper case, there are some good $50 Coolermaster cases. I myself have a Nine Hundred, and while the cooling is excellent, I think it might be overkill in this case.
Same thing with the PSU. There are some good PSU's in the $75 range. PC Power and Cooling makes some good PSUs that are a little more affordable, as does Corsair.
If you're tight on cash, the E7200 and 8800GS are cheaper alternatives to the E8400 and Radeon 4850. Not as powerful, but the money savings (and power savings) may be worth it.
In short, be weary of being persuaded into spending more than you need to. I spent $1200 on a PC back in January, and while I love all the components, in hindsight I could have shaved a few dollars and still have had a solid build. Live and learn.
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