Doesn't take a 1grand system to play well like Guncrasher. I play maxed (2048 textures, etc, 2K shadows), with ~40 processes at 60FR. With today's prices my system only cost ~$500 (not including case). 
you are reusing some components. win7 itself will cost you 100 bucks, which leaves you with:
400
cd 20
hd 50
ps 50 (and this is low)
280 (assuming no taxes, shipping) balance to get mobo, cpu, video card, ram. you can get a system for that much to play ah nicely but not with everything fully maxed out and shadows at 2048. it's like me saying I got that system for 250 bucks. which is what I paid for a new mobo/cpu/ram less what I got for my old parts and reused the rest.
anyway some of you guys think you have to buy everything brand new, well if you have a brand name computer you most likely will have to (dell, gateway, etc.) but if you think long term like some of us do, you wont spend lots of money to get a good computer.
this is how I did mine, i spent 1500 bucks on a gateway top of the line puter about 5 years ago. then I found out it was a pos 4 months later. 2 years later I bought a new case, mobo, vc and ps. reused the rest. over the next 6 months I bought parts to replace what I was reusing, since they were not the best. then I sold my gateway for 300 bucks and bought me a new monitor, keyboard, mouse plus ram. total cost for that was less than 700 bucks (about 1k less the 300 bucks) over a 6 month period. and that was a kick donut e8400 system with a 9800gtx+ evga video card that could play ah with everything maxed out.
like I said think, long term, if it takes you a year, then it will take you a year, but be patient and work within your budget. I could've spent more money than what I did at one time, but I really hate to waste money.
semp