the Gigabyte GA EP45T-UD3LR is a good mobo and it uses DDR3 memory.
dont waste extra cash on the E8500, go for the E8400 and even a slight overclock will outperform the E8500, the E8400 can overclock to 4.0ghz on a stock cooler, but i dont recommend that, if you want to overclock get a aftermarket cooler.
650W PSU seems a bit excessive, you can get away with 500W
ive put together a list for you, cause i cant sleep, you said ATI 4870 so i worked on that, id prefer nvidia but thats just me, here you go.
build:
CPU Intel Core 2 Duo E8400 3.0ghz $168 here
Mobo Gigabyte GA EP45T-UD3LR $85 (after rebate) here
or
ASUS alternative P5E3-pro $135 here
this mobo supports DDR3 and Crossfire (2 x ATI graphic cards for extra power)
RAM Crucial ballistix 4GB DDR3 1333 $69 here
WD caviar blue 500GB HD SATA 16mb cache $70 here
Saphire radeon HD4870 1GB 256bit $164 here
Antec 500W 80plus certified $70 here
or go for the one WHS mentioned its only $9 extra and for 650W it seems reasonable
Sony Black DVD-RW $30 here
Total so far is a measly $656 (gigabyte mobo) or $705 (ASUS mobo) still plenty of room for a decent case (antec 900 comes to mind only $90)
OS is your choice, and i dont know anything about monitors.
hope this helps