Long story short, I bought a asus gtx 560 and used my already owned cheap 550watt PSU, The power supply was struggling to supply enough power (I think). It took about half an hour to get all the drivers installed and up to date and running, and then I tested with a number of intensive games for another half an hour (BF3, Crysis, Crysis 2) and noticed overall it was working great (the gtx560) but It would randomly drop frame rates, I suspected this was to do with the PSU so I turned it off immediately (total running time an hour). I was wondering whether any damage to my GPU or CPU could have occurred (when I turned it off other than the random fram-rate dips it was working great, so I doubt it but some reassurance would be nice if any one knows).
The review of the Cooler master PSU was lukewarm, but it's drawbacks aren't fatal by any means. It is more than adequate for your system.
I question whether the issue is your PSU, however, because frame rate drops aren't cause by power issues, at least, not that I know of.
Well on another thread I saw mention of freezing issues with bad PSU, and I know when a CPU gets hot it throttles itself, I was wondering if not enough power was getting to the GPU (both 6 pin adapter were plugged in but I was using adapters for 4 pin and only 3 of the 4 were plugged in. so I am thinking not enough power got to the fan).
also, I would like a corsair but my budget is incredibly limited (as it is I would be pushing it with this one) and I really don't want to wait 2 weeks for a power supply (the cool master can ship in 2days).
I am all for you getting a quality PSU (highly suggest it in fact), but keep in mind a few things;
1) you are on an older duel core CPU... in fact it is the next step up from the CPU used in my wife's 5 year old office PC (just a 200MHz difference). This is likely where your random glitches are coming from. Thankfully C2Duos can OC a bit, so AFTER buying your power supply, go get yourself an aftermarket cooler for $20-30 and OC the system to iron out the bugs. If that does not work then you are going to have to save up for a new platform. Even modern duel core i3 CPUs are easily 2x as fast as yours.
2) Wattage is a poor judge of if a PSU is good or not. You have to consider the accuracy of the voltage (both at rest, and under load) which should be within 10% of the spec stated to work properly. You have to consider what protections are included in the unit to keep it from frying your system in the event of an emergency situation. You have to consider the amperage provided on the rails, and make sure you have enough power for the parts in your system. You want to consider the efficiency rating, so that you are not adding heat to the system, and so that you are not sucking down the power bill when at idle. Also fan size and weight are a consideration (I would never buy a light PSU, nor one with anything less than a 120mm fan... preferably 140mm or larger for silent operation).
500W is more than enough raw power to run your system effectively. 700W would let you run SLi (assuming your mobo allows for it). The trick is simply getting a good 500W that is at least bronze rated, nice and heavy, good fan, good reviews, and runs proper voltages when it is in your system (check CPUID's Hadware Monitor for voltages). Typically a good PSU will cost you somewhere in the $1 per Watt range, so start there, and then pair down options based on reviews.
Do NOT get one that is much larger than your needs as having too powerful a PSU can overvolt your system and cause issues. Get a proper PSU for the load you intend to put on it. 700W is justified if you intend to SLi, but if not then just stick with something in the 500-600W range.
Keep in mind that a quality PSU will last for more than one build. The last one in my system lasted for ~9 years, and still has a home in my HTPC, but I don't use it all that much anymore. I put that thing through hell and back, and the only reason I upgraded was because I needed more than 450W on my current build.
Antec and Corsair are both solid. I also happen to like PC Power and Cooling, and OCZ (same company), but many have had issues with OCZ in the past, so that that recommendation with a grain of salt.