I've had to downgrade my PC gaming rig recently due to finances. I sold off my P67 mobo, my i5-2500K proc and returned my GeForce 560 Ti 448. I just put the leftover HD in the HTPC I had and got a decent graphics card (still waiting for it). After all is said and done, I'm looking at the following:
Radeon 6870 1GB
8GB DDR2 RAM
Intel e5200
7200rpm HDs
A few things:
1.) I know my biggest limiting factors are going to be the processor, DDR2 and HDs.
2.) I am trying very hard not to spend more money on this project. I am mainly a PC gamer, but I've had to cut back due to financial concerns. Upgrading mobo, proc, HDs, etc. work against the goal of selling off/returning my hardware for cash.
3.) If gaming gets to be to difficult with the above setup, I may just sell off the video card and large HD I have and ... ::shudder:: ... just use consoles for gaming.
I'm not trying to cry poor or anything. I'm just trying to do the best I can with what I have at minimal cost. Whenever the video card comes in, I'll do some tests. As mentioned in 3, if it's not up to par, then it's off to consoles I go. Frankly, it's still tempting to sell off the large HD, but I'm fighting the urge to do so. I have a number of games on PC and while I don't foresee installing all of them right away, I like having the option to do so. On the other hand, if I sell it now and just use the 500GB HD I have as my main HD, that's more money that could help things out for the financial situation. :

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