Nice budget!
Well, MSI Platinum P35 Combo + Q6600 should be a nice combination. Regarding RAM, go for atleast 2GB from Patriot/Corsair. Yep, MX-II combined with U120E should be good. Btw, also lookout for CoolerMaster Gemini II or Hyper 212. They are nice in performance.
Regarding GPU, go for Palit 9600GT Sonic edition, if possible. The card is way better than other OC versions. Btw, with that budget, i suggest to go with a 8800GTS 512MB. Way better than a 9600GT! One more thing, make sure u invest in a good Cabinet, like CoolerMaster Cosmos!