I would get a cheaper CPU, for a budget build.
This is what I recently built:
AMD X2 for $60
Cheaper Gigabyte Motherboard for $60
New PSU for $40 (ended up using my old one, actually)
Videocard 4850 for $200 (the only non-budget part of my build)
RAM Transcend 2GB $38.99
DVD drive $29
I already had the case, Hard drive, and Windows.
In other words, I would get a videocard for about $100.