Honestly if he can flip that $165 up to $210 he could get a MUCH better card and a nice PSU. Below is a great combo and has free shipping. The extra $45 will go a LONG way. Basically if you are stuck at the $165 budget you MAY be able to get a 5750 in there with a cheaper PSU, but that is stretching it. At $210 you get a SOLID psu and a great 5770 card.
Not a bad combo. If you stay with the previous linked PSU and are willing to spend about $180 you can get the 5750. Not as nice as the combo you linked, but closer to the $165 mark. If $165 is the max, I doubt you'll get much better then the previous two things linked.