I had originally planned to not look at ex's build and come up with my own sub $500 build, but it seems that it's impossible to do with a 5770. Sorry.
$68 PSU + DVD
OCZ ModXtreme Pro 600WThoughts: It's not a god tier psu, but with the combo it's actually cheaper ($18 DVD, $20 combo deal).
It has terrible ripple of 80 mV, but the maximum allowed ripple by ATX standards is 120 mV. The real deal is that it works, and it will power your system, and shouldn't kill anything. Ex's Antec isn't a god tier seasonic either, and probably has a ripple of ~50 mV, but is less efficient (I could only find a BP 500 review, so I can't say for sure). You can save $10 by getting the 500W version, or get a 700W non-modular one for the same price (more power is not better in PSUs, and 500W is already overpowered).
$53 Case
NZXT EVO mid towerIt's $3 shipping, which is a big plus for cases. Not quite ex's rosewill, but it has a fairly impressive setup. The net result is 3 pounds and a different look. Choose what you like, but I'd only get the NZXT if I could afford the $8. If you want to skimp more, then get any old case. If you manage to find an antec 300 again for $30, then get it. That's the second best deal on a case I've ever seen.
$240 - $20 MIR PSU + OS
Asus CuCore 5770 and windows 7Unless you're going to pirate/obtain an operating system, you'll need one. This particular 5770 is $130 after rebate. If you must drop down to a 5750, you can without much of a performance decrease. There are some people who think that a 5850 is the absolute minimum to buy now too.
$222 CPU, Motherboard, RAM, HDD
Phenom II x2 550, asus m4a785, Gskill ddr2, caviar green 800GB AARSNormally I'd say no to all of these, but considering you're getting them all for so cheap, and I'm still going over the limit by $140, it's worth putting up with some of the crap. A phenom II is a phenom II. You can clock it however you want. I got the cheapest one I could find. The motherboard is a motherboard, which happens to be ddr2. This is a dead-end motherboard, so no reusing old parts here. You'll need a new cpu/motherboard/ram if and when you upgrade. The ram is old ddr2, and only 2 GB, but I have yet to use more than 1.5 GB while editing a whole bunch of files and multitasking a whole lot. Not a perfect choice, but cheap. Caviar greens are a terrible drive to use as your main HDD, but here's the deal: It's an excellent backup/secondary drive. Buy the drive now, then in 6 months save up $50 for a 500 GB samsung spinpoint f3 and reinstall your OS on that.
Total comes out to $640 with tax/shipping in cali (you have to pay tax on it in most states, it's just a question of WHEN and IF you choose to pay that tax). If you cut out the tax and the OS, it's $492.94.
Please don't buy this build just because it's under $500. Look at both Ex's and mine, then make your own decision as to what you want. We're both recommending AM3, 5770 1 GB, 4 GB of DDR3 ram, a caviar black/samsung spinpoint f3 HDD, and the cheapest optical drive you can find. If you can make that fit under $500, then do it. Another idea is to make the cheapest computer you can find with the minimum in quality (ie a cheap seasonic PSU) and see where that build leads us, then you might be able to convince your dad to spend the $700 on that one.
"Parliamentary inquiry, Mr. Chairman - do we have to call the Gentleman a gentleman if he's not one?"