First off, don't get a flat-screen monitor if you play games. They're not nearly as good as tubes for anything that needs high FPS.
Second, don't get too wrapped up in the specs. It's better to choose parts that "go together" well instead of saying "my CPU must have 256K cache".
As far as the actual CPU goes, for any decent system like the one you describe, you're always best off to just buy whatever is in the "sweet spot" at the time. That means the one that isn't quite bleeding-edge technology, but is still ahead of the power curve. Look at the prices of CPU's, and there's always a distinct cutoff where you pay a whole lot more for not much faster of a chip. Buy the one that's right below that cutoff.
Since I've never built an Intel system, I'll let Dave handle more detailed recommendations.
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