Yup GeForce 8800 is an awesome card; the 9600 is fail, period.
Tetus0 i would totally go with a bigger hdd, who cares if you go a little over budget. I would even sacrifice the 7200 speed to get a 5400 twice the size. With the size of programs 160 is entirely insufficient imo. (my own computer only came with a 200GB@7200, i've been using it for only a month or so and i'm almost full.) I'm buying a 320GB drive for my rigs spare bay as soon as i get some extra cash and buy some other things i need first.
Satchmo: i would totally go ddr3 with that system, but that's just me. I mean everything else is top of the line, why stop at the memory?