I'm going to be upgrading the main system here (Home) very soon and this is what I've picked out, prices are in AUD by the way so you don't freak out too much:
CPU: Intel Core 2 Duo E6750 ($238) or Quad Q6600 ($325) - I'm leaning towards the Quad
Motheboard: Gigabyte GA-P35-DS3P ($168)
RAM: I'm going to use my current 2GB DDR667 (4x512MB, GEiL with heat spreader in Dual Channel)
Video card: GeForce 8800GT 512MB (I have a choice out of Palit, Albatron and Asus as they're all the same price, $395)
Hard drive: Western Digital 500GB SATAII 16MB Cache ($129) + keeping my old 200GB SATAI as a secondary
Power supply: Corsair VX450 450W ($99)
Case: Haven't decided yet, I'll just spend somewhere between $75 and $115 or so
Total: ~ $1216
How's it sound? Since I'm going away for ~2 years in like 2-3 months this PC is to mostly keep my family going (So little brother can play latest games and so on) with probably a RAM upgrade (Probably to 4GB DDR800 sometime) and possibly a video card upgrade later (Like a year+).
I'll also most likely overclock the CPU from 2.4 to around 2.8 or so so game performance is on par with e E6750 and we'll have the quad core bonus, like, if stuff actually uses it (Supreme Commander, UT3 and some others utilise quad core CPUs apparently and I imagine more games + apps will in 2 years).
Edit: I'll be buying all my hardware from these stores, just depending upon which has the best prices and availability:
UMartGameDudeComputer Alliance
Feel free to go through them for suggestions or anything, especially in regards to cases.
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Also, unless you have a huge boner for tons of ports you're not going to use I'd probably recommend you get the DS3R (I have it, fantastic) or the DS3L depending on your port needs. I find the DS3R has just the kind of expandability I want without $15 worth of shit I don't. Seriously. You will never use SLI, and if you do with the kind of budget you're looking at you better be wearing this.
Edit: Your pricing mileage may vary in crazy "Winter is Summer" land.
I have a preference for Abit motherboards, though Gigabyte is just fine. I would follow JAEF's suggestions, though. You'll never use the SLI slot unless you really feel the need to play games at ridiculous resolutions.
Of course, the inflation could be not at all related to international price gouging, and just the hardware shortage the 8800GT is experiencing right now.