I wouldn't go for a 256mb video card.
You'll want at least 512mb to make the whole purchase worthwhile.
Seems pretty pricey but at the end of the day if your going to spend $1300 on a PC why not add a few hundred and make it significantly better.
Can't advise you on a better place to shop as I'm not on your continent
but I find that once you know the names of the parts you want for a PC, you can go to smaller shops and they will do it cheaper.
Also, if you know someone who will put it together for you, you save a lot of money.