Im in the process of seriously considering an upgrade myself. Ive planned just about the perfect system for $1k.
Getting the Asrock Fatality Z68 Mobo, 2600k CPU (Best cpu for gaming period right now), deciding between 16gb ram (100 on newegg now) or 8 and upgrading when I need to for much less $, keeping my GTX460 vid card since its still a beast, or might get another one and SLI for better performance than I can get from another card for the same price. I will be doing water-cooling finally though, which will let me overclock both the vid card and cpu ridiculously, thats how I justify water in the first place. Being able to surpass a $500 CPU with an overclocked $300 cpu is awesome.
I will be getting a better power supply though, need one if you want to get a good high overclock, cant have voltages jumping around.
Reason im getting 2600k instead of 2500k processor is hyper threading, figure it'll help when running a bunch of daoc accnts. Reason im getting such a good motherboard is for overclock reliability and the fact that I can upgrade to Ivy Bridge when it comes out if I feel like. It also supports 32GB ram, which I cant even buy yet
Also, DEFINITELY get a SSD for the operating system and daoc and whatever else you throw on it, then other harddrives for storage. Im torn between a smaller 60gb version and just upgrading later for less overall money once it fills, or a 120gb now for over double the price. I figure this new system wont have any troubles with 6, maybe 8 daoc clients (the latter prolly using /clientsleep). The SSD will have huge benefits for daoc, prolly not as much for Gaheris as rvr, but still...
Also, get 1600mhz memory isntead of 1333, get half as much to start and upgrade later if the price is too much.
Another edit: Reason im pushing for a cheaper build is to fight our tendency to go nuts ona 2k build that lasts for 3 years (my current setup). Getting a 1k build every year and a half uses less money overall (inflation) and you end up with better performance at every point except for the first year (which you wont even use the max performance anyway, you wont even use all the performance that a 1k system yields.)