My current hardware that i'm going to keep (HDD and GPU) is: WD 500GB Black Caviar, Sapphire Radeon HD 5670 512MB.
I have a pretty slim space available for my setup so a HTPC case in the microATX format would be perfect for me. I don't play games that are very gfx heavy, and i think my current graphic card would suffice.
Do you think this is a fair upgrade and will it do everything i need it to do?
You say you are not a gamer..then why the 600W PSU may be a tight fit in that case since the the more wattage they have the longer they are. You got a real high end motherboard there, I would protect that investment with a PSU with a higher 80 PLUS rating, regular 80 PLUS PSU's have bad eggs no matter the brand. Every things else you got checks out.