Will This Power Supply work with the gtx 260

A good 500 watt PSU will be more than adequate for a GTX260. But that is not a particularly good PSU. And besides, it only has one 6 pin PCI-e power connector. A 260 needs two. Yes, I know you could use a molex to PCI-e adapter, but why not get a good PSU?
 
Technically it should be able to power the GTX 260...but I would stick with IH8U's advice as the quality of that PSU might not be good and under load from the graphics card, it could die on you...