looks good but I need at least a 550 watt psu so the graphics card i want to get works. do you have any recommendations for a good graphics card that works with a 500 watt psu??

As far as a power supply goes you do not need anything above 450W and definately not above 500W (it may be better to go between 450 and 500 for 'peace of mind' though) for a PC of this price/range i.e. mid range PC. A good tool to use for that would be http://www.coolermaster.com/support/psu_calculator.php

As for the DVD drive you picked it wasn't very good and the reason why is because it was a Bluray drive and a cheap one at that. When picking optical media readers you should choose one with a minimum of 20X DVD spinrate, rather than the 8X you chose.

Mother Board - http://www.newegg.com/Product/Product.aspx?Item=N82E16813131402 -$99

CPU - http://www.newegg.com/Product/Product.aspx?Item=N82E16819103887 -$100

RAM - http://www.newegg.com/Product/Product.aspx?Item=N82E16820227559 -$65

GPU - http://www.newegg.com/Product/Product.aspx?Item=N82E16814102898 -$145

Hard Drive - http://www.newegg.com/Product/Product.aspx?Item=N82E16822136284 -$88

PSU - http://www.newegg.com/Product/Product.aspx?Item=N82E16817139018 -$60

Case - http://www.newegg.com/Product/Product.aspx?Item=N82E16811119137 -$80

DVD Drive - http://www.newegg.com/Product/Product.aspx?Item=N82E16827136216 -$16

Total - $653

This is a PC that is very similar to my own, and I can play Crysis on maximum settings at 1920x1080 without any trouble except a part that is stupidly processor intensive (this part is over in a few seconds though then it's back to plain sailing), or DiRT2 at absolutely maximum settings at 55FPS aswell as Anno1404 on maximum with ease and so on and so forth. Meaning you should be able to play most games in the forseable future at max or very high settings.

The power supply included is high quality it'll give that card all the power it needs and more. They only say 550w because people buy crappy power supplies and they want to remove their liability.

In any case:

http://www.newegg.com/Product/Product.aspx?Item=N82E16814150477&cm_re=5850-_-14-150-477-_-Product

An HD 5850 for $179 after rebate

or

http://www.newegg.com/Product/Product.aspx?Item=N82E16814102914&cm_re=6950-_-14-102-914-_-Product

HD 6950 for $299 which can be flashed into an HD 6970

Are both better bets and consume less power.

Update in OP

Also what is the difference between these two cpus besdes the brand?

http://www.newegg.com/Product/Product.aspx?Item=N82E16819115037

http://www.newegg.com/Product/Product.aspx?Item=N82E16819103727

It seems a lot more people bought the intel one and its a little more expensive. While the amd one is cheaper, has more cores, and more MHz? Why is the intel one better or is it at all?

:( thats annoying.

I will just give you the short version of what I said then.

The 'Phenom II 965' is the better of those two but if you want to skimp a bit more on money then go for a '955' as it is almost identical in terms of ability and can easily be overclocked to match it should you want to.

Edit: it seems in my frustration I forgot you could edit posts :S

okay but will you explain why intel is priced higher and has better ratings?

mine cost me around 1000 with decent hardware 

Core i7 850

Asus P7h55-M 

HD Radeon 6850 

4 gb ram (going to upgrade to 8 soon but were sold out of most ram) 

980W power supply simple 

Case with 3 decent fan and made of aluminium 

but remember i am australian and get screwed over alot compared to you Americans. 

E8400 is socket 775 -- it's outdated, forget it. Contemporary intel sockets are 1366, 1156 and 1155 (SB).

Most AMD processors currently use the AM3 socket.