http://www.buy.com/retail/product.asp?sku=207544960&loc=111&sp=1&adid=17662 I was planning on buying an 8800 GT to go along with it and use my old monitor, but I'm not sure if I should considering Gateway's current situation. Can I get some opinions?
That plan's flawed, but not for that reason. First off, that case isn't sufficiently ventilated to be able to use an 8800GT without it overheating, and secondly the power supply in it is too weak to handle one anyway. You would be better off building your own PC if you can (we'll happily guide you through it) or if it has to be prebuilt, go with something a bit roomier, and be prepared to replace the PSU with something decent like a Corsair HX.
$1200 is plenty for a decent gaming self build. Here's a typical parts list for a $1200 PC (not including OS or Monitor) http://www.newegg.com/Product/Product.aspx?Item=N82E16819115017 http://www.newegg.com/Product/Product.aspx?Item=N82E16813128086 http://www.newegg.com/Product/Product.aspx?Item=N82E16820145194 http://www.newegg.com/Product/Product.aspx?Item=N82E16814161218 http://www.newegg.com/Product/Product.aspx?Item=N82E16817139002 http://www.newegg.com/Product/Product.aspx?Item=N82E16811119137 http://www.newegg.com/Product/Product.aspx?Item=N82E16835186134 http://www.newegg.com/Product/Product.aspx?Item=N82E16822136073 http://www.newegg.com/Product/Product.aspx?Item=N82E16827118002 http://www.newegg.com/Product/Product.aspx?Item=N82E16827136126 http://www.newegg.com/Product/Product.aspx?Item=N82E16813998514 http://www.newegg.com/Product/Product.aspx?Item=N82E16829102003 Comes to about $1180 shipped, after $65 of rebates.