Upgrading PC with Radeon HD 7850

Hello, I've been using Dell Inspiron 580 and having a difficulty with playing 3D games - I know this model was not made for gaming though, so I'd like to upgrade with more decent graphic card. Following is the spec of my computer I'm currently using :

- Processor : Intel core i5-760 processor (8MB cache, 2.80GHz)
- Memory : 8GB DDR3 SDRAM
- Motherboard : Dell 0c2kjt
- Hard Drive : 1TB Serial ATA 2 Hard Drive 7200 RPM
- Graphic card : AMD Radeon 5450 (1GB)
- Power supply : 300w
- Screen resolution : 1680 x 1050

I'm thinking of getting a Gigabyte AMD Radeon HD7850 2GB GDDR5. ( http://www.amazon.com/Gigabyte-mini-Displayport-PCI-Express-Graphic-GV-R785OC-2GD/dp/B007PJTNYS/ref=sr_1_1?ie=UTF8&qid=1358264715&sr=8-1&keywords=radeon+7850 ) Since the power supply is not sufficient for the new card above, I'm also thinking of getting a new 500w power supply. I just found a good deal in Amazon with Dynex 520w ATX power supply. ( http://www.amazon.com/Dynex-520-Watt-Power-Supply/dp/B0067SJC80/ref=sr_1_1?ie=UTF8&qid=1358266665&sr=8-1&keywords=dynex+520+power+supply )

Since I'm not an expert on this, I'm not sure if those two things work accordingly. Please help!!
Thanks! :)
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