Custom computers are they way to go -- but don't cheap out on the motherboard (the brains of the operation). A good motherboard will last a long time as you can update them (to a limit) to support faster hardware.
As for my advice, ask aroudn with friends , I'm sure you know a few nerdy gamer buddies to find a reputable custom computer shop, please stay away from big box computer stores. I haven't priced anything out lately but I'm sure if you're just replacing the computer, not all the periphials (sp?) $1k-$1.5k would get you a pretty smokin machine. Large hard disks and dvd burners have sure become affordable lately too.
HTH.
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