holy cow dude, $194 after rebate and you've got him linked to a processor with out a heat sink which would be more he would have to spend and ram that runs faster than the processor can support
heres what i can come up with, still a little more than your willing to spend but better on the books none the less.
BIOSTAR A770 A2+ $70 ($60 AR)
http://www.newegg.com/Product/Product.aspx?Item=N82E16813138106
AMD Athlon 64 X2 4400+ Brisbane 2.3GHz Retail (w/heat sink) $65
http://www.newegg.com/Product/Product.aspx?Item=N82E16819103776
Patriot Extreme Performance 2GB (2 x 1GB) DDR800 $44 ($24 AR)
http://www.newegg.com/Product/Product.aspx?Item=N82E16820220174
$179 Before rebate and shipping, $149 After rebate before shipping, the mobo and processor have free shipping so an added $6 to ship the ram to bring grand total to $155 after rebate including shipping