NEW Build for 700$

[TheWanderer]

After my hopes of a 1700$ computer were shattered, now I'm building a ~1000$ one.

USED FOR :Gaming
BUDGET :1000USD
COUNTRY :India (I'll check for parts after suggestions)
BRAND :Nothing (good quality though)
CURRENT PARTS : Creative 4.1 speakers, 1024x768 VGA CRT monitor(need to upgrade),DVD Writer.
OVERCLOCKING : No
WHEN :A few weeks from now.
RESOLUTION:Anything, as long I can use medium to high settings on it.

Suggestions?
Also, I'm thinking whether to go in for a DX11 card or a DX10 card with higher performance, but price still matters.

Thanks in advance.
PS: Nothing with temperatures higher than 80-85C at load. Here that would be around 110C.

[TheWanderer]

Still trying to decide between the i5 and the new hexacore from AMD...

[_dangtx_]

its easy. start with the 5850/5870 and drop down for amd (not sure you need a hexa core necessarily but in the budget you can fit it)