Well... I'll go part by part.
Monitor - HUGE deal, assuming it was new. Unfortunately it is refurbished. There are several computer parts that I refuse to by refurbished, monitors being one of them.
Mouse - Definitely on the expensive side, but it IS a Microsoft input device, which are known to be overpriced.
Keyboard - Overpriced again, but again, a Microsoft device.
DVD Drive - Seems a tad overpriced, but if it is, not by much.
Case - Surprised to see a Cooler Master case that is that expensive. I personally wouldn't spend over $75 on a case, but if you are one of those people that need maximum "cool" factor, then go ahead.
Hard Drive - Fine. Except I personally prefer Seagate or Western Digital, but each to their own.
Power Supply - Yeah... you don't need 850 watts. 550 watts should be fine, and it'll save you some money.
Memory - This is the only part that seems WAY overpriced, especially for DDR2 memory. I got 4gb (4x1gb) Dual Channel memory from Kingston for $85 about 8 months ago. The fact that your getting 4gb DDR2 for $100 seems kind weird, but then again memory prices have been known to fluctuate quite a bit in the past. Furthermore, why not just get DDR3?
Fan - Not sure why you are getting a 2nd CPU fan unless you plan on overclocking...
Video Card - Seems fine to me, except I don't like the design on the card's cooling fan. But again, just my preference.
M/B, CPU - HATE Biostar boards with a passion, but thats just me. The processor is fine though.
All in all, I built a very similar computer to this one 8 months ago (exact same processor actually) for $988. The only difference is you list 8gb of memory, while I only bought 4gb. Also, the video card you listed there wasn't released at the time I bought my computer, so I have a Radeon HD 4870, however, when I bought my video card it was only $10 less than the card you have listed there. I guess my biggest question is why you decided not to go with DDR3 memory. If your going to spend $1200 on something, you should at least try to make it as current as possible.
So I guess to answer you question: Yes you can get something more with that amount of money. I look at it a little differently though, cut out what you realistically won't need.