Ask yourself:
Q. Am I a competent overclocker?

A. YES!
Think about getting an inexpensive Intel Core 2 Duo (e2180 2GHz or e2200 2.2GHz for $80 or $85 respectively) and push it to 3GHz or beyond on the stock boxed cooler.  1MB shared cache doesn't sound like a lot, but it is plenty for gaming and overclocking it more than makes up for the limited cache.  AMD is total dogshit right now.  Trust me.
e2180 http://www.newegg.com/Pr...spx?Item=N82E16819116052
e2200 http://www.newegg.com/Pr...spx?Item=N82E16819116063
Gigabyte GA-P35-DS3L mobo ($90).  Good overclocker!  The P35 chipset might not be the latest greatest, but unless you need SLI, RAID or DDR3 support this thing kicks ass.  If you need RAID, step up to a DS3R version for a little more.  P35 can handle 400MHz FSB and higher pretty easy.
http://www.newegg.com/Product/Product.aspx?Item=N82E16813128059
When it comes to video cards, you have to get a G92 8800.  The old GTS 320MB is no good (and neither is the 640MB).  Step up to an 8800 GT 512MB minimum if you plan on keeping the system for any length of time.  The reference coolers aren't great for overclocking, but some versions have nice cooling solutions.  Maybe splurge for an 8800 GTS 512MB (with the better stock cooling solution).
BFG tech 8800 GT 512MB $170 after $30 MIR http://www.newegg.com/Pr...spx?Item=N82E16814143118
MSI 8800 GTS 512MB $200 after $30 MIR http://www.newegg.com/Pr...spx?Item=N82E16814127325


A. NO, I suck
Replace the lower end, but great overclocking e2xx0 CPU with a new 45nm wolfdale.  Most games only take advantage of a single core atm, but down the road that will change.  When it does, swap in a new quad core or whatever.  e8400 (3GHz dual core 6MB shared cache) is $210 (boxed w/hsf)
http://www.newegg.com/Product/Product.aspx?Item=N82E16819115037 (out of stock right now, maybe try clubit or microcenter)


Either way, pop in 2 1GB or 2GB sticks of good RAM (for dual channel and 4 sticks can be less stable), find a REASONABLE power supply (950W?!?  $220 PSU?!?) and some nice SATA drives.  This Rosewill 550W for around $60 should be more than plenty for what you can throw at it. http://www.newegg.com/Pr...spx?Item=N82E16817182017

overclocking is kind of like rolling your own cigarettes. yes, you may get a moderately better cigarette, but the single largest reward of the process is simply saying that your roll your own cigarettes.

which is to say: don't bother.

best of luck on your new machine.

Back on topic, everything you picked out looks good except the graphics card. The 8800 GTX or even the new GT is definitely worth the extra money, because when you scale up the graphics the GTS will stutter hard where the higher end 8800s run normally. The 8800 Ultra and the Geforce 9000s are wastes of money, so don't go there.

That CPU with enough RAM (2 gigs at least) installed is an epic win.

Get a good cpu fan and decent thermal compound.

I sold a CPU fan to some dope on craigslist and he said he wasn't going to use thermal compound. The fan was meant for overclocking. He said he was going to OC it.
Oh well I was $20 richer.

He is getting a decent deal on the PS/cpu combo.  It ends up being a 100 dollar PS, which isn't bad for 950 watts or whatever.  It's probably overkill, unless you plan on running sli in the future, but then again I run intel...and they arent quite teh power hogs some of the amd chips are.  Of course if you spent like 20 buck extra on your PS you could get into slick modular unit. 

On second though..that is just bling....I bought a modular thinking it would cut down on cables, but because i have so much stuff in my case I ended up using all the moduals anyway...duh.   Looks nice though.

Biostar has been around for a long time...they make a good product.  I had one of thier boards once and I never had any problems.   That was a long time ago though, so maybe things have changed.  I pretty much stick to Asus boards.