I have been quoted the following for a gaming spec pc, Is it worth the money?

For that price its worth it. I would try to get a 8800 graphics car or a ATI 4870 1 gb and a bigger hard drive and a little bit better processor. You will fill 250 gb real fast. I easily have 350gb in just games on mine. I have about 1 tb total filled of my 2.5 tb