$850 Budget gaming comp?

I'm really new to building computers and after accumulating some cash my job, i finally decided to build a gaming computer to last me a couple of years (with the small upgrades such as the video card/PSU.) And here's my build.

ASUS DVD Burner/Reader - $21
Antec Three Hundred Illusion Black Steel ATX Mid Tower Computer Case - $55
Western Digital Caviar Black 500GB HDD - $60
Radeon HD 6870 - $190
Corsair 600W PSU - $70
G-Skill 4x2 8GB DDR 1600 - $85
Intel Core i5-2500 Sandy Bridge 3.3GHz (3.7GHz Turbo Boost) + MSI Z68MA-ED55 Motherboard -$345

Totaling around: ~$820

Will this set up allow my computer to atleast play the games coming out in 1-2 years on atleast medium-high?
Is the Sandy Bridge worth it?
Will the PSU handle the load?

Spend the extra few bucks on the 2500k, overclocking them is ridiculously easy. I'd suggest http://www.newegg.com/Product/ComboDealDetails.aspx?ItemList=Combo.654387 for $359. It includes a better motherboard. The MSI offering costs the same, but has an inferior slot layout.

If you can swing it, grab a 6950 2GB instead of the 6870. It's another $40 but overall will perform much better and last you longer.

For $10 less, get the Spinpoint F3 1TB, http://www.newegg.com/Product/Product.aspx?Item=N82E16822152185 - great performing drive, twice the space, nuff said.

I know I've just tacked on ~$50 to your build, but it'll be a much nicer system valuewise.

I definitely agree on the 2500k for the overclocking ability, you will not be disappointed.

Oh, just noticed the memory says 4x2, you'd be better off with a 2x4 kit.

YEA GET THE 2500K for the OC ability, you might not do it now, but be better off down the road.. Also get the 2x4gig mem kit, it's about the same price, I never like running with all my mem slots filled.

Here, fit the 6950 in there. Don't think this one is unlockable though, those retail for about $20 more.