I agree, i would NOT skimp on the power supply. Get a quality name brand PSU that you know you can trust. Generic PSU's are a reaaallly bad idea if you want stable clean power running to your hardware.
I dont see the point, even if his current system wont draw more than 250W, to get a low quality generic POS power supply that will not provide good power to your hardware. I would much rather spend $60-$100 CAD on a good brand 400W PSU that i know will put out close to 400W than $20 on something that says its rated 1000W (i know its exaggerated) that only puts out 200W. Reliable power is something that shouldnt be overlooked in my mind.
Ditch the foxconn mobo, get something better. Get the 3200 instead of the 3500, you won't notice the difference, and you'll be able to use the money elsewhere. There's no point in having a good CPU with crap everything else.
Unless you're getting that Wireless adapter for free, ditch it. Ditch the warranty. Those things are useless. If you have any problems with the system, just send the parts back to the actual manufacturer. Faster and cheaper, because manufacturer's warranties are free.
PLEASE get a better Powersupply. You will regret in a few months, possibly more when that PS has a voltage dip/spike and you fry an expensive component. It has happened to me.
I've had a few of those come through my doors, they are cheap crap. I had one with an athlon xp 3400 and the heatsink was this weak little thing with a clip that looked like it was made out of a paperclip, the guy didn't know why it didn't work, I took off the heatsink and pulled the chip and got a good wiff of burned cpu, the board was an ecs and apperantly the thermal shutdown didn't work. Go elsewhere, anyone that says corsair OR major brand is not good.
Edit: Onboard LAN Network (Gb or 10/100) WTF?????????
I would lean towards a better psu and possibly downgrade the CPU.
that said, some generic psu's out there are fine, ive had a few which have been running a few years now with little 12v rail discrepency and no over heating. Ive also had a few go melt on me- my fault, asked too much of the poor 300w piece of tin. your generic psu is over 400w so wont have to work too hard.
other than that the set up seems ok, you buildin it yer self?