I recently bought a cooler master CM690 case from micro center for 20 dollars after rebates, and a cooler master real power Pro 650W power supply for 50 dollars after rebates... I'm sure if you have patience these deals will come around again, and make building a new computer more affordable. My most recent build:
CASE and PSU listed above.
MOBO: Gigabyte P35-DS3L: newegg price 89.99 free shipping
CPU: C2D E8400: newegg price 219.99 free shipping
RAM: Corsair XMS2 2Gb, (2 sticks): newegg price 32.99 free shipping
GPU: HD3850 diamond viper 512MB: newegg price 174.99 after rebate
free shipping
Sony 20X DVD burner: 27.99 @ the egg
seagate barracuda 500GB SATA HDD: newegg price 119.99 free shipping
keyboard, mouse, monitor, speakers recycled from previous computer.
Grand total is WELL under the 1000 dollar budget, and this system is crazy fast compared to my Pentium 4...
Do yourself a favor, listen to the other advice provided, and BUILD A NEW SYSTEM! DO NOT UPGRADE!
worst case scenario, you can even make the cost go lower, by purchasing a cheaper processor (E2160 is less then a hundred dollars, and is supposed to hit 3Ghz Overclocked from what I was told earlier)
Hmm I see what you guys are saying, and will prolly stick with the new build a little further down the road, but just for the time being I might pick up some more ram.
And that build is a really great price, I guess I'll just have to wait and find some deals like that.
Thanks everyone for giving them opinion and helping out, really appreciate it.