Concerning the CPU, as Lowc15 said, you don't need an i7 just for gaming. An i5 should pack sufficient punch. I see many people recommending the 3570k, but the OP doesn't really strike me as somebody who'd go and overclock their rig, so going for the unlocked "k" variant seems a little pointless. You can save $15 by picking a regular 3570, and another $20 by going with the 3450 the OP was eyeing. Seems worth it to me, as in gaming the CPU is usually not the factor limiting performance anyway. An alternative CPU suggestion would be the 3350P, which is another $5 cheaper and also uses a bit less power than the 3450 because it lacks integrated graphics. You don't need integrated graphics since you'll be using a discrete graphics card.
Going back to the GPU, I don't actually think a GeForce 640 with GDDR5 exists. The 640 comes with DDR3, which essentially makes it an overpriced piece of trash if you take price/performance into consideration. Judging by Tom's benchmark linked above, the Radeon 7770 seems to be the best choice. It's not that expensive either, as Newegg lists it as low as $110 after rebate. It should be powerful enough to run LotR Online and WoW with no issues, and Diablo 3 with fairly decent settings, at 1920x1080. However, if you think you might keep the system around for a long time and want the performance to last, or think it likely that you'll expand your horizon to more graphically intense games, I'd consider spending more on the graphics side of things. The GTX 660 Ti seems reasonably future proof; anything more expensive than that might be overkill.
Also, if you're given the chance, spend a few $ more on a decent power supply, instead of a shitty stock one. Look for some form of 80 PLUS certification. Your hardware will be grateful

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