I'm looking along these lines which should be in your price range:
ENLIGHT 7237 ATX MED TOWER Case $40
Antec 300W Power Supply $44
AMD THUNDERBIRD-A7 ATHLON 750MHZ SOCKET A W/FAN (RETAIL-3 YEAR WARR) $130 CPU
ABIT KT7 KT133 4XAGP @200FSB UDMA/66 SOCKET A ATX $132.95 Motherboard
Floppy $9
IBM DTLA-307030 30.7GB ULTRA-100/7200RPM HD $140 Hard Drive
CARDEXPERT NVIDIA GEFORCE2 MX 32MB 4XAGP W/O TV $113.95 Video Card
or if funds available Elsa Erazor X GeForce 256 GPU About $150
CREATIVE LAB LIVE! VALUE PCI 256VOICE ENVIRONMENTAL AUDIO (OEM) $54.95 Sound Card
PIONEER DVD-105 16X IDE DVD DRIVE (SLOT) $136.95 DVD Player
http://www.7thzone.com/ Web site with info on DVD
128MB Mushkin High Perf REV1.5 PC133 RAM $136
32x/8x/4x PlexWriter Internal EIDE CD-RW with Software CD-RW
Mfr. # PX-W8432TI/SW $159
Samsung Syncmaster 955DF 19"/18V .25mm monitor $ 318 Mfr. # 955DF
That's about $1360 with the cheeper video card. I didn't include speakers or keyboard and mouse, but you can go with cheeper ram and a smaller HD if necessary.