Try latest driver for GPU. Or borrow a PSU and GPU from someone else to test. The image you posted looks like the GPU is faulty. Try those test to make sure the GPU is faulty or not. I doubt the PSU as its a low power unit and fail to provide sufficient power to GPU to run properly.
If you are interested in buying a decent PSU : http://www.newegg.com/Product/Product.aspx?Item=N82E16817207013