Will this system and its components be compatible?

That is a very old gpu and makes no sense in a modern system. Where did you even find one?

point taken, my friend gave it to me about a year ago. The only games I play were made at least made 5 years ago (I'm not into new games) - but I do have some graphic intensive programs that I need to use for school... So I'm guessing I should just buy a new graphics card yes? Or will this 9600 be able to suffice.

Given, I am using a 128mb dedicated card right now (ancient I know!) It does everything I need it to do, but it is very slow and 'notchy' with the academic program. I don't need a top of the line GPU... can you make a recommendation for me?

If you already have it its certainly fine to give it a try, and it may work for your needs. Its still better than the integrated gpu on Intel CPUs. Just thought it was a list of parts you were buying and threw me lol.

You don't need a z77 board since you won't overclock with that CPU, but its fine to use one. The PSU is more than needed, 500W would be plenty but again it would work fine