Will this build work?

Your build looks like it will work to me. The monitor you've picked is out of stock though. A few suggestions from me. Take a look a look at the following replacement components:

I am using this power supply presently. It is very good quality in my opinion:
OCZ StealthXStream OCZ600SXS 600 Watt - $80
http://www.newegg.com/Product/Product.aspx?Item=N82E16817341010

Since you save money on the power supply you can get 4 gigabytes of this RAM:
SUPER TALENT 4 gigabyte (2 x 2GB) 240-Pin DDR2 800 (PC2 6400) Dual Channel Kit Desktop Memory - $45
http://www.newegg.com/Product/Product.aspx?Item=N82E16820609218

If you want a 320 gigabyte hard drive you can also save yourself some money. Take a look at this hard drive for $55:
Western Digital Caviar SE16 WD3200AAKS 320 gigabyte 7200 RPM hard drive
http://www.newegg.com/Product/Produ...74&Tpk=Western Digital Caviar SE16 WD3200AAKS
 
Very nice build, but I would bump your RAM up to DDR2 1066. The price difference is nada.

As far as getting the price below $1000.00, the only thing I could see
skimping on is maybe a smaller hard drive and lose the tool kit. The only
tools I used for my build was a phillips head screwdriver and scissors.
 
Changed your list a bit, this should give you best bang for the buck:

Monitor, Asus 19":
http://www.newegg.com/Product/Product.aspx?Item=N82E16824236060

Hard Drive, 500gb Western Digital Caviar Black(Faster than Caviar SE16):
http://www.newegg.com/Product/Product.aspx?Item=N82E16822136320

HIS Radeon 4870:
http://www.newegg.com/Product/Product.aspx?Item=N82E16814161268

Corsair 650TX:
http://www.newegg.com/Product/Product.aspx?Item=N82E16817139005

Case, Xclio:
http://www.newegg.com/Product/Product.aspx?Item=N82E16811103010

Lite-On Dvd Burner:
http://www.newegg.com/Product/Product.aspx?Item=N82E16827106268

Gigabyte Mobo:
http://www.newegg.com/Product/Product.aspx?Item=N82E16813128387

CPU(Quad vs Tri Core)+OS(Vista Home Premium x64):
http://www.newegg.com/Product/ComboDealDetails.aspx?ItemList=Combo.185446

Thermal Paste(better than Arctic silver):
http://www.newegg.com/Product/Product.aspx?Item=N82E16835186020

Toolkit, same as in your list:
http://www.newegg.com/Product/Product.aspx?Item=N82E16899261003

Same K/b&Mouse:
http://www.newegg.com/Product/Product.aspx?Item=N82E16823126017

Memory:
http://www.newegg.com/Product/Product.aspx?Item=N82E16820178219

Grand Total:---------------$1,049.00 is what its showing after shipping
Grand total after rebates---$1,004.00

Now... If you change your case to this, that is a little bit cheaper and has free shipping like this one:
http://www.newegg.com/Product/Product.aspx?Item=N82E16811147105
Your grand total drops to...$1,000.01
After Rebates-------------$955.01
 
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