Get one of Gigabyte's P35 motherboards. There's a whole bunch - you can choose based on how you like the expansion slots layout, things like eSATA/IEEE1394, Northbridge cooler etc. Most people have had great luck with their boards and are an easy recommendation. Marc's IP35-E suggestion is a proven performer too. He's pretty much offering you the best solution so listen to him.
Try to squeeze in a E4xxx CPU. I'd stay away from the E2xxx series because of the low L2 cache. It's debatable how useful that L2 cache is (some benches show it only to be a factor in media encoding, some games don't show a difference, some show a pretty significant one). I'd say the E4xxx series is a decent middle of the road option.
You can easily score a 2x2GB DDR2 800 @ 5-5-5-15 kit from G.Skill/Geil/Mushkin for $80-ish. I only recommend 4GB coz it's so darn cheap. You don't actually NEED 4GB but if it's within your budget, why not? The only trouble with DDR2 800 (CAS 5) kits is they may not have much (if any) legroom. If you decide to upgrade to a 1333FSB CPU in the future, you won't have much overclocking room. For now, it won't be a problem at all.
However, if the savings between 2GB & 4GB mean a better video card for your rig, by all means go for the better video card at the expense of doubling your RAM. The 512MB 8800GTs have really come down in price and the 3870 only makes sense if you can get it much cheaper and your budget is tight. But if you can score a GT for, say, an extra $30-$35, those $30 would be well-spent.
The Corsair PSUs are gold, Jerry, GOLD!!!
An actual budget would be nice to really fine-tune your options.
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