First I think the best place to get hardware are:
GoogleGear
Newegg
Pricewatch
Now here's a list of stuff that I'd buy in your price range.
Antec case with 400 watt power supply $90.00
AMD XP2500 Barton Processor $93.00
Wester Digital SE 60 gig w/8MB buffer $83.50
MSI K7N2-L motherboard $96.50
PC2700 512 memory $61.00
Lite on DVD drive $34.99
Lite On 52x32x52 CDRW Drive $44.99
MITSUMI floppy drive $8.00
Vid card ATI 9500 PRO $205.00
Logitech cordless MX duo (keyboard&mouce) $83.00
NEC 17" CRT monitor $150.00
Logitech Z640's speakers $65.00
All that for a grand total of $1014.98. I think the only thing that wasn't free shipping was the monitor so add a little more cash for that. You may not need a new monitor and keyboard, you didn't really say, so you might save money on that stuff.
I would suggest getting
Logitech Z560's instead of the other ones I posted above. I have them and they're loud as fuck and sound great. They cost $139.00, and they're worth it for the power they have (400 watts).
Hope I didn't miss anything. I threw this together in a few minutes.