I'm guessing you meant 4GB x2 on the memory, not 4x1, right?
PSU is definitely underpowered, and is absolutely not high enough quality to be used at that level of underpowered. If that was a Super Flower or Seasonic 430w unit, maybe, but even then I'd be skeptical. Still, it's PROBABLY not relevant to your current issue, although I've seen power supply issues cause just about every possible glitch you could imagine.
Do you have the most recent BIOS installed for your motherboard? What are your BIOS, GPU card driver and chipset driver versions?