mini ITX are tiny. You would be able to use the case as a stand for your monitor, yet have a hell of a lot more power, quality and scope for upgrading than in the all-in-one system
Case:
http://www.newegg.com/Product/Product.aspx?Item=N82E16811154091
Motherboard:
http://www.newegg.com/Product/Product.aspx?Item=N82E16813131727
CPU:
http://www.newegg.com/Product/Product.aspx?Item=N82E16819116394
Memory:
http://www.newegg.com/Product/Product.aspx?Item=N82E16820146736
Hard drive:
http://www.newegg.com/Product/Product.aspx?Item=N82E16822152185
Wireles NIC:
http://www.newegg.com/Product/Product.aspx?Item=N82E16833320048
OS:
http://www.newegg.com/Product/Product.aspx?Item=N82E16832116986
Monitor:
http://www.newegg.com/Product/Product.aspx?Item=N82E16824005196
total: inc shipping: $720
Things I may change would be the case + PSU, and if you really, really wanted, put the CPU up to an i5:
http://www.newegg.com/Product/Product.aspx?Item=N82E16819115075
Apparently the CPU cooler is a very tight fit in that case too, as it is with most mini-ITX cases, so you may want to look into either another case (which I mentioned before) or a low-profile cooler.
I know too that I haven't included a DVD drive, and there is a reason - it takes up a hell of a lot of space. Unless you go for a slightly roomier case, I would recommend getting an external drive instead.
Whilst typing this, and doing a little more research, on reflection I would hugely recommend changing the case + PSU + getting a DVD drive, for ease, and to vastly improve quality and stability of the system.
Same build as above, but with the following replaced:
Case:
http://www.newegg.com/Product/Product.aspx?Item=N82E16811112297&Tpk=pc-q11b
PSU:
http://www.newegg.com/Product/Product.aspx?Item=N82E16817151085
DVD drive:
http://www.newegg.com/Product/Product.aspx?Item=N82E16827118039
CPU (Optional upgrade, included in new price):
http://www.newegg.com/Product/Product.aspx?Item=N82E16819115075
New Total: Just under $888 inc shipping
the size of the case is 10.24" x 7.87" x 12.40", so you could use it as a stand for your monitor if you are really short on space or, as it is very small and relatively light, you could even wall mount it or put it on a shelf