Whelp, I decided to go back to the drawing board and figure out a good GPU based build for under $500. This is what I came up with:
AMD Athlon 64 X2 5000 Brisbane 2.6GHz Dual-Core Processor - Retail $54.99
BIOSTAR A770 A2+ AM2+/AM2 AMD 770 ATX AMD Motherboard - Retail $69.99
SAMSUNG Spinpoint F1 HD502lJ 500GB 7200 RPM SATA Hard Drive - OEM $59.99
OCZ Gold 4GB (2 x 2GB) DDR2 800 - Retail $41.99
Antec EA650 650W Power Supply - Retail $79.99
Rosewill R222-P-BK Black Steel ATX Mid Tower Computer Case - Retail $19.99
Microsoft Windows XP Home SP3 for System Builders - OEM $89.99
HP Black 20X DVD Burner - OEM $19.99
HIS Hightech H465FS512P Radeon HD 4650 512MB 128-bit Video Card - Retail $59.99
Total $496.91
The BIOSTAR A770 motherboard, will allow me to upgrade to the Phenom II processor, later on. The 4650 Radeon card is pretty nice video for the price.