Is is a good gaming rig? if not what would you do?

Well, it's certainly not a slow computer, but it's an outdated platform. Yeah, want the newest and fastest? Then stick to socket 1155 / P67, not 1366 / X58. Socket 1366 is being replaced in a few months by the upcoming 'Ivy Bridge' platform from Intel. So, keep everything in that build, just swap the processor and motherboard out for the i7 2600K, and a P67 board from ASUS or Gigabyte. Also, you don't need 16GB of RAM, period. Unless you plan on heavy digital animation rendering at Disney Pixar? Yeah, didn't think so. Pointless amount for the average gamer. Not even games use more than 2.5-3GB of RAM. 4GB is the sweet spot for gaming, or, 8GB at the most (which is still a pointless amount for gaming). Your power supply choice makes me facepalm too. You don't need to go all gung-ho-overkill on a 1200w power supply. Most you'd need would be a quality 650-750w psu. Stick to Corsair, Antec, XFX, or Seasonic. So, by swapping the CPU and board for socket 1155, and a lower power supply, you'd have enough left over to go with a faster video card, like the HD 6970 or GTX 570.