You will get more bang for your buck going AMD/ATI. Since you have $1300 limit, I would consider going this route.
Intel has the fastest cpu but is quite a bit more expensive.
Newegg has some good deals going on now. look at these-
AMD Phenom II X4 970 Black Edition Deneb 3.5GHz Socket AM3 125W Quad-Core Desktop Processor $170 with $10 gift card http://www.newegg.com/Product/Produc...19103894-L013D
XFX 650W SLI Ready CrossFire Ready 80 PLUS BRONZE Certified Modular Power Supply $50 after rebate http://www.newegg.com/Product/Produc...17207002-L012D
Antec Three Hundred Black Steel ATX Mid Tower Computer Case $45 after rebate http://www.newegg.com/Product/Produc..._-11129042-L0D
G.SKILL Ripjaws Series 8GB (2 x 4GB) DDR3 1600 (PC3 12800) Desktop Memory $75 after rebate http://www.newegg.com/Product/Produc...20231314-L018A
or 15% off any desktop ram with promo code DM15MR11US
So thats a case, psu, cpu, and ram for $340.
Leaves plenty for motherboard, ssd, hdd, dvd, gpu, and you could get a different case. I just linked the antec 300 because it's on sale.
Good luck. Be sure to check out the online deals section here at ocn for good deals http://www.overclock.net/online-deals/
along with the for-sale sections http://www.overclock.net/sale-wanted/
. There are always some great deals from fellow OCN members.