Nebulous
Legend
While I agree that Felon is greatly overexaggerating prices, the GTX 260s aren't under $200. You'll be spending ~$250 for one. But as you say, building a great gaming PC in no way costs over $1000. Even if you demanded an i7 -- which has no real mainstream version yet -- to have a current upgrade path, it would at most add another $300 between extra CPU, RAM and motherboard costs.
Okay guys, i'm currently looking into upgrading a year old 3GHz Dell desktop that was never meant to be a game rig. I have a new 24" LCD for it, and i'm looking to get an Intel i7, 4 GB of RAM (DDR2 or DDRe, what's the big difference, and is it worth it?), a good (but not bleeding edge video card), a fast hard drive.
What would i reasonably be looking to spend? Don't need speakers or anything, i have that. It's running XP now, but i want like to see how games run with DirectX 10-11.