Use the link in my sig to answer the rest of the questions so the best answers can be offered to you.
But in general, yes, the parts are good. The PSU might be able to be replaced with something less expensive. I've seen the corsair 400cx for as low as $20 amir recently, though those deals don't last long. An OCZ 400w would get the job done too.
Depending on budget, why not add a cheap GPU or more RAM? A 4350 or 4650 will do well. 4GB should be the minimum these days with RAM so cheap. Also, considering that you are using the IGP, it WILL use part of the System RAM so you'll have less than 2GB.