OK, here is a system built from Parts from www.cworld.com.au
(I know the owner through contacts)
CPU: AMD Athlon XP 2400+ - $118
Motherboard: Asus A7N8X-E-DELUXE $159.00 (better motherboard will greatly increase speed)
Video Card: Leadtek Winfast 256MB A360 TDH FX5700 $256.00 (you said you wanted games)
RAM: 256MB Hynix DDR PC400/3200 $75.00 (need 2 sticks, so $150)
HDD: Maxtor 80G 7200RPM 8MB Cache ATA-133 (6Y080P0) $100.00
(I swear by Maxtor, some people don't like it so you can change that if you want.)
Case: AOpen Miditower ATX QF50A case with 300W PSU $136.00
DVD Writer: LG GSA-4120B 12X +/- Dual Layer DVD Burner RETAIL $139.00
(personally i wouldn't bother, but not my system)
$100 for SONY Floppy and Thermaltake Volcano 12 (last thing you want is for your new computer to melt!)
Motherboard has inbuilt LAN and Sound.
Thats $1158 without monitor/keyboard.
You could get a lesser video card, but the cheapest at the moment (FX5200) will still put you over.