Critique build for friend

Well, my friend asked me to put together a decent gaming PC for him. We went over components and I picked out what I thought he could really use. He thought the price was a little high, but for a full system including 19" LCD, the total is hovering around ~$1200. I do most of my shopping with Newegg, but I wouldn't be opposed to buying from ZZF or local retailers for a better deal. I would like you to critique the following major components. It might be beneficial to know that he's a musician and he loves MMO's. And so...

CPU - e6320 w/ stock cooling & AS5 (I intend to tweak a bit)
GPU - EVGA 8800GTS 320 MB (max res is 1440x990 on LCD)
Mobo - Gigabyte 965P DS3
PSU - OCZ StealthXstream 600W (not sure about this)
Sound - Creative X-fi Extreme gamer (he asked for it)
RAM - 2 x 1 GB G.Skill DDR2 800 ($89.99, CAS lat. of 4)
HDD - Hitachi T7k500 320 GB

If you know where to find a quality, affordable 17"-19" LCD, that could bring costs down along with some other suggestions. It'd be nice to drop $100 from the total.

I'd go with a Corsair HX520 instead of the OCZ unit.