You are overspending on the CPU. It is generally accepted that a dual core will not be significantly slower than a quad core in games. For just over £50 you can get an E5200 which can be clocked to around 4Ghz. This saves you £70 which can be used to get a far nicer case (that Asus looks way too small, and doesn't take 120mm fans) and, more importantly a 4850. The 4850 will absolutely dominate the 8800GT, even coupled with the slightly cheaper CPU.
Also, if you get the cheaper CPU you can get a much nicer mobo, which will be important for clocking the 5200!!! If you dont need a PSU I would go with:
Product Name Qty Price Line Total
Samsung SH-S223F/BEBE 22x DVD±RW SATA Dual Layer ReWriter (Black) - OEM £12.99
(£15.26) £12.99
(£15.26)
HIS ATI Radeon HD 4850 512MB GDDR3 TV-Out/Dual DVI/HDMI (PCI-Express) - Retail £99.99
(£117.49) £99.99
(£117.49)
GeIL 4GB (2x2GB) PC2-6400C5 800MHz Black Dragon DDR2 Dual Channel Kit (GB24GB6400C5DC) £49.99
(£58.74) £49.99
(£58.74)
Abit IP43 Intel P43 (Socket 775) PCI-Express DDR2 Motherboard £59.99
(£70.49) £59.99
(£70.49)
Samsung SpinPoint F1 250GB SATA-II 16MB Cache - OEM (HD252HJ) £27.99
(£32.89) £27.99
(£32.89)
Antec Three Hundred Ultimate Gaming Case £29.99
(£35.24) £29.99
(£35.24)
Sub Total : £280.94
Shipping cost assumes delivery to UK Mainland with:
City Link Parcel Next Day (Delivered Mon-Fri)
(This can be changed during checkout) Shipping : £10.95
VAT is being charged at 17.5% VAT : £51.08
Total : £342.97
Along with the E5200. For under £400 that is simply fantastic, and will really outperform the spec you posted above. You get a better case, motherboard, more RAM, and a far better GPU without really losing out on the CPU.
EDIT: Spend the remaining few quid on an Akasa 965 heatsink. I got one the other day and it is far more efficient than the Intel stock cooler, and is quieter.