[zmatt]

Ok for $1200 I think we can swing an i7 build.

CPU:
Newegg.com - Intel Core i7 920 Nehalem 2.66GHz 4 x 256KB L2 Cache 8MB L3 Cache LGA 1366 130W Quad-Core Processor - Processors - Desktops

Mobo:
Newegg.com - BIOSTAR TPOWER X58A LGA 1366 Intel X58 ATX Intel Motherboard - Intel Motherboards

Ram:
Newegg.com - OCZ Platinum 3GB (3 x 1GB) 240-Pin DDR3 SDRAM DDR3 1600 (PC3 12800) Triple Channel Kit Desktop Memory - Desktop Memory

Video Card:
Newegg.com - XFX HD-489A-ZDFC Radeon HD 4890 1GB 256-bit DDR5 PCI Express 2.0 x16 HDCP Ready Video Card - Desktop Graphics / Video Cards

PSU:
Newegg.com - CORSAIR CMPSU-750TX 750W ATX12V / EPS12V SLI Ready CrossFire Ready 80 PLUS Certified Active PFC Compatible with Core i7 Power Supply - Power Supplies

Hard Drive:
Newegg.com - SAMSUNG Spinpoint F1 HD103UJ 1TB 7200 RPM 32MB Cache SATA 3.0Gb/s Hard Drive - Internal Hard Drives

Optical Drive:
Newegg.com - LG Black 22X (CAV) DVD+R 8X DVD+RW 16X DVD+R DL 22X (CAV) DVD-R 6X DVD-RW 12X DVD-RAM 16X DVD-ROM 48X CD-R 32X CD-RW 48X CD-ROM 2MB Cache SATA 22X DVD±R DVD Burner - CD / DVD Burners


Your choice of a case: Tech-Forums Recommended PC Components v2.0

Cooling:
Newegg.com - Sunbeam CR-CCTF 120 mm Core-Contact Freezer CPU Cooler W/TX-2 - CPU Fans & Heatsinks
and you'll need this:
Newegg.com - Sunbeam CR-LGA1366 LGA 1366 Core I7 Retention Bracket - CPU Fans & Heatsinks

That should do it. Your total is: $1148 roughly. Add a case and you should be good to go.
I kinda cut it close on your budget and $50 wont buy you much of a case. You can swap out that 4890 for the 1gig 4870 and save some coin there. You could also opt for 1333mhz memory instead of 1600mhz, that should save you a bit too.

Here are some alternate choices:

4870:
Newegg.com - MSI R4870-T2D1G Radeon HD 4870 1GB 256-bit GDDR5 PCI Express 2.0 x16 HDCP Ready CrossFire Supported Video Card - Desktop Graphics / Video Cards

and 133mhz ram:
Newegg.com - OCZ Platinum 3GB (3 x 1GB) 240-Pin DDR3 SDRAM DDR3 1333 (PC3 10666) Triple Channel Kit Desktop Memory - Desktop Memory


About the only thing you cant max out with that build is Crysis, but add a second video card in crossfire and you will make quick work of it. I went with 3 gigs of ram to save cash so you can squeeze in the budget. I would recommend going to 6gigs in about a year. I would also get a second 4870 or 4890 in about a year too. With that cooler you are good for overclocking also.