First things first, keep the CPU. Keep the Case. Keep the HDD. Keep the GPU.
The CD drive compatibility wont be an issue. You'll have IDE connectors. But unless your drive is a DVD drive or a DVD combo drive, which is a drive that is capable of reading multiple types of disc formats including DVDs, it will be unable to read DVD discs & you wont be able to boot from your Windows/Linux DVD.
EDIT : @ Pepperman
Yup, that's what happens when you've got too many windows open at one go.
Once you get a 1600 Mhz RAM, Cas Latency is basically only of academic interest. 9, 8, 7 should all work pretty much alright.
But if you're looking at 1066/1333 then going with a CL7 kit assumes far more importance.
You can keep yours or go with the faster ones Davcon/Pepperman linked you to for a bit extra.
Stick to the well known reputable brands for YOUR PSU. Antec, Seasonic, Corsair, XFX, OCZ etc should do just fine. At the very least Cooler Master or Thermaltake if you get a good deal on them.
No sense using an 8yr old OD that could die at any given time
My case and psu suggestions are better products and actually cheaper
I wouldn't touch a BFG product they are out of business who supports or honors warranties?
@ calguyhunk; That ram isn't faster--look at the speed; the G Skill is 1600 with a CL of 9, where the Crucial is 1066 with a CL of 7.
To OP; Athlon II's only support up to DDR3 1333 at stock, but since you want to OC, you want faster ram than 1333--the ram you picked out should be fine, but if want to spend a little extra, you could get a kit with better timings, like this one: G Skill 4 GB DDR3 1600
Whether the slight performance increase is worth the $17 increase is up to you.
As calguyhunk said, the CD drive will work with your system, but its doubtful you'll be able to use any newer CDs/DVDs (especially double layer DVDs). With that said, I'd recommend at least the LG SATA DVD Burner .
As far as the PSU goes, BFG (the manufacturer) is going out of business and not honoring warranties (though I did notice that NCIX is covering that particular model for one year). They did make decent units, but if you ever have a problem after the first year, you'll be SOL.
If this bothers you, the minimum I would get for that system is 500 W unit, and NCIX happens to have an OCZ 500 W PSU for $60 before rebate; that plus your original case at $60 puts you about $20 over your original bundle (before rebate).
edit: the psu Davcon mentioned in conjuction with the mobo he linked would allow you to CF two HD 5770s, or upgrade to a significantly higher power-consuming card (such as a GTX 480). Looking at the price difference (especially if you don't do MIRs) it might not be a bad idea to just get the 600 W unit.