Found this open-box on newegg...

Not well at all, maybe on the very lowest settings. That machine just isn't a gamer, and bringing it up to snuff, if possible at all, will cost more than just building a gaming PC from the outset. It has no video card; upgrading to anything decent will also mean replacing the PSU. Then, you'll be limited by a muttly CPU. I would suggest looking at the most recent System Builder Marathon articles, specifically the $500-$550 builds. Then post a new-build thread on the forums for further advice based on current pricing and availability.

Yes, but would do better with a stand-alone (a.k.a. discrete) video card installed.

Hello VG;

That Athlon II 170u CPU and HD 3000 IGP are just too weak to be good choices for a gaming system. I don't believe you'd be happy with this choice.
It was $330 before being offered up on open box

Open Box Refund Only Return Policy
http://www.newegg.com/HelpInfo/ReturnPolicy.aspx#29

"If you purchase an Open-Box product Newegg guarantees only that you will receive the product itself; accessories MAY OR MAY NOT BE INCLUDED with Open-Box products. Newegg will not send you a missing accessory, even if the missing accessory is required in order to properly make use of all the product’s advertised functions."

Will it play games? Yes.

Will it be able to game at high settings? No.

Can it be made to run games better? Yes.

Would you be better off building your own rig for the money it will take to make this one "gameworthy"? Probably.

Last, are Open Box purchases good? Maybe, just be sure you read the fine print as WR2 points out.