Looks good, although since I was on an even more restricted budget than you I built an ATI computer that totaled 800 alongside the monitor and accessories such as keyboard and mouse and whatnot.
Anyways, experience and recommendation is that Nvidia and Intel provide better GPUs and CPUs but at a substantially higher cost. It's quality vs cost efficiency mostly.
Edit: That's right, I forgot. Ditch the heatsink that your CPU comes with and invest in an aftermarket heatsink. Cooler temps are worth the money, not only for performance but also for your immediate environment (Having a bad heatsink can result in heat radiating from your PC and making it pretty uncomfortable).