you could wait forever for prices to drop lower and lower but the gap between the maximum and what you'll have will get wider and wider each time too! the only reason to wait is to see if Fermi will blow away ATI, and tbh the jurys still out. i do agree the i7 is absolute overkill for what you want to do, an i5 would be a much better option for gaming as you can spend a little more on the graphics too. you could even swap the cpu and the notes you save upgrade to a 5870 and get a blu ray player instead (if you would use it for playing them) and still come under £1k.
XFX ATI Radeon HD 5870 1024MB GDDR5 PCI-Express Graphics Card £329.99
(£280.84) £329.99
(£280.84)
Intel Core i5 750 2.66Ghz (Lynnfield) (Socket LGA1156) - OEM £143.03
(£121.73) £143.03
(£121.73)
Gigabyte GA-P55-UD4 Intel P55 (Socket 1156) DDR3 Motherboard £138.99
(£118.29) £138.99
(£118.29)
Patriot Sector 5 G Series 4GB (2x2GB) PC3-12800 1600MHz Dual Channel (PGV34G1600ELK) £82.99
(£70.63) £82.99
(£70.63)
Samsung SH-B083L/BSBP 8x BluRay ROM / 16x DVD±RW Drive - Black (OEM) £77.98
(£66.37) £77.98
(£66.37)
OCZ ModXStream Pro 600w Silent SLI Certified Modular Power Supply £64.99
(£55.31) £64.99
(£55.31)
Corsair H50-1 High-Performance CPU Watercooler (Socket LGA775/1156/1366/AM2/AM3) £63.99
(£54.46) £63.99
(£54.46)
Antec 300 Three Hundred Ultimate Gaming Case - Black £42.99
(£36.59) £42.99
(£36.59)
Samsung SpinPoint F3 500GB SATA-II 16MB Cache - OEM (HD502HJ) £39.99
(£34.03) £39.99
(£34.03)
Sub Total : £838.25
Shipping cost assumes delivery to UK Mainland with:
DPD Next Day Parcel
(This can be changed during checkout) Shipping : £12.50
VAT is being charged at 17.50% VAT : £148.88
Total : £999.63
If you didnt want to spend on the blu ray, then swapping it out for a regular dvd-rw, u could fit an i7-860 with HT instead and it would only come in at £30 over budget