That PSU is a POS also. You do NOT want to try and save money on the PSU. That's the most important component in the system. A cheap PSU will cause all sorts of problems from system instability to fried components.
Here's a build that's just slightly over budget with the DVD burner.
AMD Athlon II X4 630 Propus 2.8GHz 4 x 512KB L2 Cache Socket AM3 95W Quad-Core Processor - Retail
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
G.SKILL 4GB (2 x 2GB) 240-Pin DDR3 SDRAM DDR3 1333 (PC3 10600) Dual Channel Kit Desktop Memory Model F3-10600CL8D-4GBHK - Retail
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
http://www.newegg.com/Product/ComboDealDetails.aspx?Ite... $192.98 (CPU + RAM combo) There's really no reason to use 2GB of DDR2 RAM on a new build.
GIGABYTE GA-MA770T-UD3P AM3 AMD 770 ATX AMD Motherboard - Retail
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
Microsoft Windows 7 Home Premium 64-bit 1-Pack for System Builders - OEM
http://www.newegg.com/Product/Product.aspx?Item=N82E168...
http://www.newegg.com/Product/ComboDealDetails.aspx?Ite... $174.98 - $10.00 MIR (Motherboard + OS combo)
SAMSUNG Spinpoint F3 HD502HJ 500GB 7200 RPM 16MB Cache SATA 3.0Gb/s 3.5" Internal Hard Drive - OEM
http://www.newegg.com/Product/Product.aspx?Item=N82E168... $54.99
SAMSUNG SH-S223B 22X SATA DVD Burner Black Drive Bulk
http://www.zipzoomfly.com/jsp/ProductDetail.jsp?Product... $29.99
Antec Three Hundred Illusion Black Steel ATX Mid Tower Computer Case - Retail
http://www.newegg.com/Product/Product.aspx?Item=N82E168... $49.95
SAPPHIRE 100283-2L Radeon HD 5770 1GB 128-bit GDDR5 PCI Express 2.0 x16 HDCP Ready CrossFire Supported Video Card - Retail
http://www.newegg.com/Product/Product.aspx?Item=N82E168... $164.99
OCZ ModXStream Pro OCZ500MXSP 500W ATX12V V2.2 / EPS12V SLI Certified CrossFire Ready 80 PLUS Certified Modular Active PFC Power Supply
http://www.newegg.com/Product/Product.aspx?Item=N82E168... $64.99 - $25.00 MIR + 10% off w/ promo code CZ11, ends 11/25
Total -
$732.87 - $35.00 MIR's