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I personally went quite high end, but there are few things you might want to consider

Firstly, google the "digital foundry PC." They made it for £300 and offer up suggestions to make it better

Secondly, don't worry about an i7, the GPU is nearly always the bottleneck, I have a 670 and an i5-3570k. I have never had any need to overclock it to make up for the much better GPU