Planned Medium budget rig, your thoughts please, is overclocking advised?

Ye looks good but I would change the GPU to a 5770 1gb or GTX260 216, but it would be good to wait for Fermi to be released at the end of the month as it should drop the prices a little.

If you want a faster CPU get the Intel i5 750 and then clock it as clock for clock it's faster then the phenom in most cases. If not Phenom will do.
 

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