EDIT: I already have a monitor, hdmi cable, keyboard, and mouse. I plan on using ubuntu through a USB at first, and later getting another RAM stick, an actual GPU, Windows, HDD, and DVD drive.
Thanks for the link, yet I already uploaded a build idea above with better RAM and a 3x faster CPU. I was looking for comments on that. That site looks good though.
Ah your build also is more expensive before mail-in rebates (which generally are a huge pain in the ass) and are not just cash back. They're usually in the form of gift cards. I base build prices on what they are not including mail-in rebates, as they're such a pain. It could easily take them 3 months to get the gift card into you. I also just realized your build has no HDD and the one on logicalincrements does, so you could actually take that build and get a better CPU and more RAM.
Anyways, you could save money by not getting the case fans. You won't need them for a build like this. The case comes with one 120mm front fan already. You could also save by getting a smaller PSU as your build is going to come nowhere near using 500W. Other than that, there's really nowhere to cut costs anymore.
The main things you need to look at for compatibility is the socket type on the CPU and motherboard need to match up, and you need to make sure your RAM will fit in your motherboard. You're good on both of those.
You also of course have to be sure you have enough power, which you definitely do. You could probably get by with 250W just fine. When you buy a real graphics card you also have to make sure it will fit on your motherboard and in your case, and that you can power it.
There shouldn't be any real bottlenecks in this build.
The main things you need to look at for compatibility is the socket type on the CPU and motherboard need to match up
That is generally true, though you should still check. Even though ivy/sandy bridge had the same socket, i believe the sandy bridge chipsets didn't support everything ivy bridge has, feature wise. Some mobo's also required manual update to support ivy bridge (i don't know if it was possible to update without having a sandy bridge CPU installed).