i agree with on the mobo and processor but here are my suggestions for the rest, though the nf7-s is only $99 on newegg.
heatsink & thermal compound: thermalright slk947u
sale $32.95
artic silver ceramique
$3.95
(links are to
sidewinder computers where i got the same heatsink and t.c.)
1gig of pc3200 ram since your budget is $1100
lite-on black dvdrom drive $33
lite-on black cdrw drive $38
you might want to check out the 9800xt i dont know if it's speed is worth the extra $100 or more but you do get a free hl2 voucher