You can get a more cost effective setup with a Phenom II, the i7's are intended for high performance PC's and are, in my opinion, very overpriced. Here's a suggested setup. For your budget, you can get a very good PC.
Case:
COOLER MASTER COSMOS S RC-1100-KKN1-GP - This is a full ATX case which is suggested with high performance cards. It is also an aluminum case which, in my opinion, are better made than steel ones. $189
Motherboard:
GIGABYTE GA-MA790FXT-UD5P AM3 DDR3 AMD 790FX - This board supports AMD's newest processors, DDR3, and Crossfire. $179
Graphics Card:
SAPPHIRE 100251SR Radeon HD 4870 X2 2GB - Spec wise, this beats the GTX 285 and can run most games very well. $379 (Before $10 mail-in rebate)
Power Supply:
CORSAIR CMPSU-1000HX 1000W - This is overkill for your setup, but if you want to Crossfire the cards, you will have plenty of power available. $239 (Before $30 mail-in rebate)
CPU:
AMD Phenom II X4 955 Black Edition Deneb 3.2GHz - This is AMD's current flagship processor. It has a high clock speed and, since it is Black Edition, the multiplier is unlocked making it very easy to overclock. $245
RAM:
G.SKILL 4GB (2 x 2GB) 240-Pin DDR3 SDRAM DDR3 1333 - You need DDR3 memory to run on the motherboard. $65
Hard Drive:
Western Digital Caviar Green WD5000AADS 500GB 32MB Cache SATA 3.0Gb/s 3.5" Hard Drive - I don't suggest using RAID 0 since if one drive fails, you lose all the data. You can buy two of these drives for less than the price of a 1TB drive. $58
Optical Drive:
SAMSUNG 22X DVD Burner Black SATA Model SH-S223F - You need one to load software. $26
Total Price: $1,383 before rebates