I think for 35k, u can replace the E7400 with something like a 5300 or E6xxx series and save ~6-7k on mobo+proccy.
And overclock it to get the same performance as the AMD.
Ya ya the 785G is good, but u are already buying a 5770 with this, then there is nothing better than this. The amount u save can be invested in a better PSU for future upgradations. Also u get a better cabby as well with this. Add to this 4GB RAM in comparision to 2GB which would definitely give u better minimum frame rates than a AMD setup with 2GB RAM.
So, i would reccomend:
Intel E5300/6300 - 3.4k (Overclock is a must to get similar performance as the AMD. If not overclocking, get the AMD eyes closed)
Gigabyte G31M - ES2L - 2.3k
Corsair 4GB kit - 5.4k
Seagate 7200.12 500GB - 2k
Sapphire ATI 5750 - 9k
Benq G2220HD - 8k
Corsair VX450 - 4k
CM Elite 310 Cabby - 2k
Logitech Desktop - .6k
This offers u better frame rates in gaming due to the better card and higher RAM. Gives u better upgrade options and a very good PSU. And the cabby won't give u cuts like the Bijli.