Budget Gaming PC 2014

No you're actually better off with the i3 and spending more money on your graphics card. The GTX 650 Ti is ok, but I'd recommend the Radeon R7 260X or R9 270 over it. The Radeons are newer and faster, as well as better value for money. I don't know what you're budget is. It'd help if you stated it.

The i3 3220 is however a generation old, so look at the i3 4330 or the i3 4130 and a good H87 or Z87 motherboard. The motherboard must be Socket 1150 if you get the 4130 or the 4330 (and you should since it's the newest).

The power supply is too small - get a Corsair CX500M or CX600M instead. 500 watts should be plenty and the Corsairs are good and affordable, as well as semi-modular (meaning less cables in your case).

As stated above, you don't need 8.1 Pro unless you intend to connect to a domain, the regular 8.1 should be plenty and you can put the money you save towards a better graphics card. Or, you could get 2x4GB sticks of RAM to make 8GB.

About the RAM - if you do get 4GB, get 1x4GB stick for the time being (even though it'll be slower than 2x2). Reason being is so that you can easily upgrade to 8GB in the future by adding another 4GB stick, but honestly I'd just get 8GB now.
 
Do you need an optical drive? I've built a lot of PCs in Fractal Design Core 1000s, and it has great cable management if you don't have an ODD. You can route your cables up there, but it will obviously be blocked if you place an ODD in the slot.
 
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