Are we sure this is in good condition? I'm weary of buying used CPUs myself. I bought one for an old laptop, but that was like 10 bucks. I guess if the seller is reputable you should be fine.
H61 boards I'm not a fan of, and some of them have out of the box compatibility issues with Ivy Bridge as I recall (H61s are technically "compatible" but may or may not require a BIOS update to make them work). I'd I'd look at an actual Ivy Bridge chipset, forgive me I don't recall the model numbers off hand.
As far as better GPUs, I really like my Asus GTX 770, it may be a little out of your budget, but the rig in my signature plays any game I've booted up on it at wonderful settings in 1080. Probably the most system intensive title in my library being BF4 premium. Unless you count my Minecraft with a 512x512 texture pack and shaders, that actually gets pretty ballsy.
http://www.newegg.com/Product/Product.aspx?Item=N82E16814121770&cm_re=asus_770-_-14-121-770-_-Product
You could also go the next tier up if you want to stick with Radeon, which would be the r9 280. I'm typically an AMD guy, but I ran into problems with my 7870 GHZ edition, it just didn't like running my virtual box for some reason while I was gaming, and at the time I needed to as a leader in a gaming clan I hosted several server control programs.
http://www.newegg.com/Product/Product.aspx?Item=N82E16814121867&cm_re=r9_280-_-14-121-867-_-Product
From what I gather, both cards are adept to handle 1080 resolution games with the eye candy turned on. Both of these are made by Asus, so quality is good either way. I would say the Radeon looks to be the better buy, I think the 770 and the r9 280 are a fairly even match overall.