In-Laws PC

So here's what i have towards the PC.
Thermaltake case
550W Seasonic Power Supply
OCZ 3x1GB RAM

I'm building this for my 14 year old brother-in-law & 17 year old Sister In-law. He'd like to play everything (but doesn't need everything at MAX forever)and she's mainly focused on Sims 3. I'd like to get them something that will last 4-5 years until they are old enough to buy thier own PC's.
After talking with a friend, he said that i wouldn't need to/want to go i7 as they don't need it and won't appreciate it for the cost. He said with the savings from the i7 to use the triple channel memory, i could get an i5 or something with 4 GB RAM and spend more on the video card.
Core i5 PC: $915.00
Intel Core i5-750 Lynnfield 2.66GHz www.newegg.com/Product/Product.aspx?item=N82E16819115215
Gigabyte Motherboard www.newegg.com/Product/Product.aspx?item=N82E16813128400
Muchkin Ram 2x2GB www.newegg.com/Product/Product.aspx?item=N82E16820146871
EVGA Gtx 260 Overclocked video card www.newegg.com/Product/Product.aspx?item=N82E16814130433
22" Acer Monitor www.newegg.com/Product/Product.aspx?item=N82E16824009145
Samsung 1TB Harddrive www.newegg.com/Product/Product.aspx?item=N82E16822152102

I'm pretty new to building/planning for PC's so i'd appreciate any feedback & ghelp i could get. I'm not even sure i need and i5, but i just thought i'd see what i could get. Otherwise i'm not sure where to start looking.

Agreed, you'd save a couple hundred bucks. Check out the budget build on PC Perspective. pcper.com/hwlb.php?guide4=y#guide4

Thanks for the heads up. I'll keep that site in mind. I thought my in-laws were ready to move on this PC idea, but i guess it's not going to be until Christmas time. Maybe we can find something cheap on Black Friday.

So i'm ready to pull the trigger on this deal. After realizing that there isn't much of a market for 3x1 GB ram, i think we're going to build an i7 system to put the ram i already have into.
Specs:
GIGABYTE GA-EX58-UD3R LGA 1366 Intel X58 ATX Intel Motherboard www.newegg.com/Product/Product.aspx?Item=N82E16813128375
Intel Core i7-920 Bloomfield 2.66GHz www.newegg.com/Product/Product.aspx?Item=N82E16819115202
SAMSUNG Spinpoint F1 HD753LJ 750GB 7200 RPM www.newegg.com/Product/Product.aspx?Item=N82E16822152100
Sony Optiarc 24X DVD/CD Rewritable Drive www.newegg.com/Product/Product.aspx?Item=N82E16827118030
Thermaltake case
550W Seasonic Power Supply
OCZ 3x1GB RAM

And i'm still on the fence about the video card. I have about $180 to spend and would like something upgradable for the future. I'm between XFX HD-577A-ZNFC Radeon HD 5770 & SAPPHIRE 100283-2L Radeon HD 5770 which are the same card by two different brands, but i'm up for any suggestions on other cards in my budget. Also if there is anything else on this system that you think i could improve upon, let me know.
Thanks for the help!

What about this Board by ASRock www.newegg.com/Product/Product.aspx?Item=N82E16813157163
or
EVGA 121-BL-E756-TR LGA 1366 Intel X58 Micro ATX www.newegg.com/Product/Product.aspx?Item=N82E16813188051
Both don't have the negative problems with the OCZ ram. I guess i didn't think there would be problems with the RAM so long as the specs were good on it. I'm really trying to keep to my $200 budget for the motherboard, so let me know how you feel about these two.
Most reviews talk about overclocking, which i have no intention on getting into, so those reviews are pretty useless to me.

That MOBO had some OCZ issues and the guy said 'Didn't automatically recognize any of my memory settings (OCZ 3GB 1333). Had to set voltage, timings, and speed manually." Which isn't something i can do on my own. I'm sure i can increase my budget to get the better video card while still getting a better MOBO. I actually have the Gigabyte board, so what woud it take to take out my Mushkin ram and put in the OCZ and see if it boots. I'm assuming just popping out the current and put in the new, that would help me test if the new MOBO would handle it. Is that possible or not?

So if that RAM works in my PC, should i still get the Foxcon or go with the gigabyte? Either way i'm not sure i can swing the GTX 275, so i might just wanna get the nicer MOBO, which i assume is the gigabyte one.

Fresh install of Windows 7 going on right now. Can't wait for you all to see the New rig. It's the Police Rig because i installed the sound activated fans i won at the lan LAN and when they alternate they are red and blue, so it looks like a cops head lights! Better watch out because this new i7 is going to pull some people over!!!!
Can't wait to see the look on my in-laws face when i power up this bad boy!
Thanks everyone for the guidance in building this!

The crappy thing is i got windows 7 through the ultimate steal - a student program and some how i only got an upgrade key to upgrade windows to 7, so it doesn't like the totally new install on the system. so i'm thinking i have to uninstall, install a borrowed version of Vista (which is all i've got) then upgrade it... Not sure why that would make the difference, but that's what it's telling me.
I don't see anywere on the website that i was purchasing an upgrade CD Key, but that's what i got. I've got an email into Microsoft, but they onle work mon-fri 8-8, so we'll see how fast/if they get back with me before christmas when i'm passing the PC off to it's new owners. It's not causing a problem for another 3o days, but it's still something i'd like to have done when it leaves my house!
Anyone wanna go sledding? we got lots of snow!

There's a registry hack that will help you with your problem. I installed a student copy for a guy at work. It activated just fine after I wiped the drive. www.winsupersite.com/win7/clean_install_upgrade_media.asp

Thanks Nacelle, that sounds much easier than installing an old Vista disk that i have then upgrading from that...