Best gaming PC I can build for up to £700?

I am looking to build my first gaming PC, and I would like to know all the best possible parts for my budget. Ideally it would be less than £700 but that is the most I would spend. I don't need the accessories like the monitor, keyboard, etc. and I'm going to be using it to play games like Skyrim and I'll be using mods on them, so I want a decent speed and picture.

I will be using my 32" Toshiba TV to play on, so will I need to play through HDMI?

I also want to use my PS3 controller with it if that's possible so if I need any software could you link me to it?

Any other information is appreciated as I'm new to using gaming PCs.

I have an old Dell Dimension 3000. It's obviously nowhere near as good as what I am planning to build but are there any parts from that I can harvest and use like the fan or the optical drive?

Update:

I'd like it to be able to connect to wifi, will that be a part of the desktop or something external like something that plugs into the USB port?

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