1) The paste that comes with it is decent. But if you want to find better, this is one of my fav round-ups:
http://www.hardwaresecrets.com/article/Thermal-Compound-Roundup-February-2012/1490/5
I've used the Xigmatek PTI G3606 before. It is inexpensive, easy to work with and performs very well.
I also think Tom's did a thermal paste round up recently, and maybe even Frosty Tech. Worth checking those too.
2) That's a very good PSU and it should be enough. I personally prefer to over-spec a bit. If it comes in a 700 or 750w version and doesn't cost much more I'd suggest that. Keeps load in the efficiency sweet spot and runs cooler/quieter under load. But even at 650w you'll be fine.
3) Yes...according to the manufacturer's specs here:
http://www.asus.com/Motherboards/M5A97/#specifications That is a 970 series chipset board though, with 4.2 power phase. I'd recommend a 990FX chipset with an 8+2 power phase for the FX 8 core CPUs.