Here is what Sharkey recommended last month - September Value Gaming PC Guide
http://www.sharkeyextreme.com/guides/MVGSBG/article.php/3633106
Case: Antec Sonata II (with 450W PSU) - $89
CPU: Core 2 Duo E6300 (1.86GHz) Retail - $186
Cooling: included Retail HSF - $0
Motherboard: AS Rock ConRoeXFire (i945P) - $81
Memory: 1-GB (2x512-MB) Generic PC2-4300 - $83
Hard Drive: 120GB WD Caviar SE (8-MB) SATA 3.0 Gb/s - $55
Video Card: NVIDIA GeForce 7600 GT 256MB (PCIe) - $153
Monitor: 17" LCD with 8-12ms Refresh - $160
Sound Card: 8-Channel Integrated - $0
Speakers: Logitech X-530 6-Piece Speaker System - $53
CD/DVD-ROM: LG GSA-H10NB 16X DVD Writer - $29
Communications: Onboard LAN - $0
Mouse: Logitech MX310 - $23
Keyboard: Microsoft Multimedia Keyboard - $15
Operating System: Windows XP Home - $74
Total: $1,001 <but those were last month’s prices>
This fits your requirements pretty closely, and I endorse the choices, except for the motherboard and monitor (I prefer 19”). I have Antec cases and PSs, WD hard drives, Logitec speakers, and that mouse. Since that ASRock board doesn’t overclock well, get the E6400 instead. Or get a better motherboard; those with the Intel P965 chipset are better, and overclock well; consider the Gigabyte GA-965P-DS3 ~140 , or maybe the Gigabyte GA-965P-S3 ~115 (they don’t have firewire). But I’m really not very familiar with C2D boards yet, so can’t give the best motherboard advice. You’ll want 2GB RAM at some point, so get a 1GB stick, not two 512s. I really urge that you get a bit more $ and upgrade that motherboard and get 2x1GB RAM if you can, then study overclocking carefully and try it once you learn how, just be conservative. If you pick a cheap flashy case, don’t get stuck with an inferior PS, which is what most of them come with. A quality power supply is very important.