That is a build I did real quick. You can shave off a bit more money, by getting a cheaper PSU, and possible 2 x 1gb of ram. But in general your build from what I could see was pretty spot on for your price range. Obviously second hand would increase the price/performance, but for someone newly assembling that could be an issue with knowing what is your fault, or if you got jipped by someone.
I put the ram at 1.5 v instead of 1.65 v, and the a pretty good quality PSU as they can lead to problems when building. I recommend getting the 3240 instead of 3220 I3, because it's the same price and every 100 mhz helps being more compatible with more games.
I also hesitate to recommend this build as you might not be happy with your results. A lot of the Screen shots and videos you might see probably have 4.0 GHZ+ processors, and better videocards. But, I can't be sure, and I would get other peoples opinions that emulate. I forgot their usernames unfortunately. Maybe, Soleron. Pemalites above advice is good, and he in general gives good advice.
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