Hmmm well i'm getting a new computer soon as my computer sucks (even though some may think i have a good computer from what i've said before, I did, but don't have it anymore, long story don't ask. maybe i'll explain later) but i'm getting $2,000 in a couple days (again long story, don't ask) which is more than double your budget but here's what i'm getting,
-Processor: AMD Athlon 64 3200+ or 3500+ (depends if i really want to spend all of the $2,000 or keep some left over)
-Motherboard: ASUS A8N-SLi DLX (best AMD motherboard out there, IMO)
-Video Card: XFX 7800GTX Overclocked
-RAM: 2GB
-HDD: Maxtor 200GB 16MB cache 7200rpm
-CD/DVD R/RW: ASUS DRW-1608P (DVD RW) and ASUS CB-5216A (DVD R)
-Sound Card: Sound Blaster Audigy 2 ZS (i have mine already just gonna take from my current comp)
I'm also getting better speakers (7.1 to be exact cause my 5.1 kinda broke when i moved) a better mouse (one with a real laser instead of optical) and new chassis
Now this all costs from $1500-1900, all depending if i get the 3200+ or 3500+ and if you want to count the mouse and speakers. Now i know this is over you budget but my last computer was around your budget and it had 1GB instead of 2GB and instead of the 7800GTX it was a 6800GT and the Processor was a 3000+ and my budget was $1,000 which is a little more than yours. so i went to
Newegg with your budget and made this:
Processor: AMD Athlon 64 3000+
Motherboard: ASUS A8N-SLi
Video Card: Leadtek PX6600TD-256 (6600 with 256MB memory)
RAM: Rosewell 1GB (i choose Rosewell cause they are good and cheap)
HDD: Maxtor 200GB with 16MB cache 7200rpm
CD/DVD R/RW: ASUS DRW-1608P
Soundcard: Sound Blaster Audigy 2 ZS
I also added a cheap chassis with a 500W PSU and it only came up to $785 (under your budget yet still a nice computer) you can make it cheaper by but i choose parts i know are cheap but still good. Oh and keep in mind i made this with PCI-E not AGP, as PCI-E is faster than AGP but AGP is cheaper. Also i did not factor in the keyboard, mouse, monitor and/or speakers. Long post i know but i hope this helps you a lot.