Trynone

Awesome, thank you all, this is very helpful! 

Following my previous post, here are some hardware suggestions:
 
 
Case:
http://www.newegg.com/Product/Product.aspx?Item=N82E16811146067
OR
http://www.newegg.com/Product/Product.aspx?Item=N82E16811146073
 
Motherboard
http://www.newegg.com/Product/Product.aspx?Item=N82E16813132118
 
CPU
http://www.newegg.com/Product/Product.aspx?Item=N82E16819117369
 
Power Supply
http://www.newegg.com/Product/Product.aspx?Item=N82E16817371059&cm_re=antec-_-17-371-059-_-Product
 
 
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Keep your RAM, and you can use your other parts or upgrade them/add more later. If you don't want to wait for the GTX 960 you can look into this card... 
 
http://www.amazon.com/dp/B00J0ISHMQ/?tag=extension-kb-20
 
http://www.newegg.com/Product/Product.aspx?Item=N82E16814121855

My thoughts are...
 
Buy a new...
 
             Case
             Intel motherboard
             Intel CPU (the main part of your budget... choose an i7 for high quality streams or an i5 with lots of ghz).
             New 620W (or maybe 750W) PSU
 
 
Keep your RAM, hard drive, and other stuff. If you need to, you can always upgrade your graphics card or switch to an SSD later.
You might want to wait until the GTX 960 graphics cards come out for something more affordable and not overkill for streaming something from a console.

I'm looking to drastically upgrade my PC to stream console games on Twitch (ideally 1080p with nearly flawless capture).
 
I have a good internet connection, solid web cam, high quality mic and headset, I just have to finalize my PC build.
 
With the exception of my video card with is a NVIDIA GeForce 9500 GT, 1GB 128-bit DDR2, all my current PC's specs can be viewed here:
 
http://h20564.www2.hp.com/hpsc/doc/public/display?docId=emr_na-c01959723
 
It's been suggested that I upgrade my CPU (i5 or i7), GPU, and Power Supply.
 
Does anyone have any good recommendations for this?
 
Let's say my budget is around $1K USD. 
 
Any help would be great! Thanks.
 
Note: I'm not as interested in streaming PC games, so an intense video card isn't as much of a priority as the processor. 

There is a big difference between the two. The 2768 is an Nvidia GTX 760, and the 2978 is a GTX 970. The 970 is roughly twice the performance for less than twice the price. The choice is up to your's, but I would not recommend buying that. If you want a card in that price range, it would be an AMD Radeon R9 290, not that. 

On air: GB G1.
On water: EVGA FTW
 
The GB G1 will be fine on water also.
EVGA support waterblocks without voiding warranty (if that's important to you).
 
So it comes down to your intentions IMO.
EK GB G1 specific blocks are available now, don't think I've seen EVGA ones yet - something else to consider if on water.

it is a coin toss between 2 lottery tickets
 
I say buy the one that you like aesthetically the most.
 
All I can say is my G1 did an amazing job, have not had the pleasure to try that EVGA card.

Both those cards are cream of the crop. EVGA does indeed have great customer support but the real differences between the G1 and the FTW is that the EVGA is a good bit smaller and comes with a crazy factory overclock.
 
You can still push the OC further and with a bit of luck get it very close or even over the 1500Mhz mark 970's are seeing.

that might be a good idea too
 
hopefully more G-Sync monitors will be out by then

IMO paying slightly more for a G-Sync Monitor is safer and better than modding your own
 
http://pcpartpicker.com/part/aoc-monitor-g2460pg
 
AOC is the cheapest G-Sync equipped monitor