Yes you are. Bios Version 0502 dates from 11/24/2008. And the CPU support list for Athlon II X4 635 wants Bios Version 1402 03/19/2010 (or higher). No reason not to use the latest Version 1507. What version of Windows are you using?
upgrading to windows 7 isnt a problem but for now im using XP 32 bit I just havent had the time to reformat and all that jazz.
I think you want to update the BIOS. Then install the new CPU and get everything running stable. And after that do the OS upgrade
sounds good can you refer me to a guide(stupidproof if possible upgrading bios is one of those things i almost never do because im scared of it).