Yeah, spend the money on buying games, or something like some raptor hard drives or more memory. The gap is nowhere near large enough to justify the price. Truthfully, I would recommend going with the 3200 over the 3400 as the price gap isn't really good there either. Since you're not into OCing then go with the 3400.
If possible wait until mid summer (end of June), AMD and Intel will be bringing out new motherboards and processors, and you'll be able to get a faster processor for about the same price as whats out now.
If you're getting a nice processor like that, make sure and get at least 1GB of RAM, I would say more so you don't have to upgrade it later. Also, spend the extra on a nice video card.
Go with the 3400+.