Check out this PC for $1200 (I know $200 over) but its worth it.

Case: Thermaltake armor
Processor: Intel quad q8200
Psu: Corsair 620 watt
Ram: corsair 4gb 800mhz
motherboard: GA-EP45-UD3LR 775 ATX Motherboard
hard drive: WD 500gb 16mb cache
DVD Drive: Dual layer sony 20x
Video card- GTX 260 core 216 55nm

for about $1200 and it can play the new games because of the gtx 260.

I found it here... RealmComputers.com

or you can build it yourself but it will cost you time and research.

yea I would go with sp3 instead of sp2... a lot of security fixes and such.

Well, you can get a really good comp for $1200 that is completely capable of playing any new game today. The GTX 260 core 216 and intel core 2 quad q8200 as well as 4 gb of ram and vista premium are recommended.

Here are the custom computer makers that can make you a comp that is very powerful. Realm Computers and Digital Storm are recommended by me but Digital Storm does not offer a gtx 260 and 4gb ram in that price range. Realm does offer the quad q8200, gtx 260 and 4gb of ram for $1200, and you should be good with that. BTW those two are very reliable companies so you should be good with either.

Here is the link to the two companies...

Realmcomputers.com

digitalstormonline.com