Will this work and will it be powerful enough to stream?

[azurehobo]

A little back story would help I suppose. My friend wants to stream his LoL games on Twitch and his current build doesn't cut it so we've decided to upgrade. My idea was to upgrade him to a current gen i5-3570k CPU with, new z77 mobo, and 8gb of 1600 DDR3 RAM. Costs would be around ~365 USD, but of course he doesn't like that idea. Instead I thought of possibly just upgrading his old CPU to a newer one and upping his RAM.

Current build:
ASrock 770 Extreme3
Athlon II X3 440 @ stock
4gb G.Skill DDR3 @ 1333mhz
ATI 5770 1gb DRR5 @ stock
1tb 7200rpm HDD
DVD-ROM
Raidmax Smilodon

Proposed cheap upgrade:
Same motherboard (ASrock 770 Extreme3)
Phenom II X4 965 Black Edition Deneb 3.4GHz
Patriot Intel Extreme Master, Limited Edition 8GB (2 x 4GB) (should work and Newegg says it's supported)
ATI 5770 1gb DRR5 @ stock (same as current)
1tb 7200rpm HDD (same as current)
DVD-ROM (same as current)
Raidmax Shilodon (same as current)

So in the end he wants to stream his games on Twitch.tv without massively hurting his FPS (which is the issue currently). The programs that would run during the stream would be : LoL, Skype, FFsplit/Xsplit.

Will this work? I'm guessing it should (as my old Dell with a X4 630, 4gb of DDR2, and a 5770 can), but I'd like a second opinion on this matter. While I'm still pushing for the full upgrade to a Ivy i5, new mobo, new RAM, I don't think he really wants to as he only plays League.

Last question, the PSU is the built in Raidmax Shilodon PSU which is 500w. While it works now, will it work with the 125w demand from the new CPU?

 

[azurehobo]

It should work fine, but I would get a better power supply, just in case; http://www.newegg.com/Product/Product.aspx?Item=N82E16817139028

Well I'm glad that it looks good, and ya I've always hated his PSU, but I didn't design his original system otherwise it would've been a better PSU.