Decent Gaming Rig for <£300

It looks like you have a good idea but I would make three main decision changes.

1. The processor is an old Intel Pentium D, by the looks of it and is based on Intels old NetBurst Technology. I would recommend upgrading that to a faster, almost equivalently priced Intel Core 2 Duo. They are by far the better processor and it will last you longer.

2. The Case you have chosen may not be big enough for the new nVidia 8 series cards, it probably is but perhaps do a little research. I am 60% sure it will be fine though, as it is usually the bigger nVidia 8800 series cards and the new nVidia 9800 series that tend to be larger.

3. Definitely go for a much better power supply, 500W is fine but I wouldn't trust a make I have never heard of and on the grounds its SO cheap. You do not want it to blow or go wrong as it will be you hardware that will suffer. I would recommend going for some slightly better ones like CoolerMaster, Antec, Hiper and ThermalTake etc.

I hope this helps you, I would say the power supply is the most important thing you would need to upgrade though as explained in point 3. Points 1 & 3 are most important.

Cheers. :D
 
I'm pretty sure the processor is one of budget dual-core ones:
Here is what it said on micro direct.

Oh and the graphics card fits inside the case fine I've read the measurements and everything seems to be fine!

The Intel Pentium dual-core processor is the newest addition to the Intel Pentium processor family. This dual-core processor delivers great mobile performance, low power enhancements, and multitasking for everyday computing.

Specifications

General

Product Type
Processor
Processor

Type / Form Factor
Intel Pentium Dual Core E2180
Multi-Core Technology
Dual-Core
64-bit Computing
Yes
Processor Qty
1
Clock Speed
2 GHz
Bus Speed
800 MHz
Compatible Processor Socket
LGA775 Socket
Manufacturing Process
65 nm
Thermal Design Power
65 W
Thermal Specification
73.2 °C
Architecture Features
Execute Disable Bit capability, Intel 64 Technology, Intel Thermal Monitor 2
Cache Memory

Installed Size
L2 Cache - 1 MB
Expansion / Connectivity

Compatible Slots
1 x processor - LGA775 Socket
Miscellaneous

Package Type
Intel Boxed
Manufacturer Warranty

Service & Support
3 years warranty
Service & Support Details
Limited warranty - 3 years
 
I am happy to hear the Graphics card fits all okay, it would be an annoying set back if it didn't. I would still want to go for a Core 2 Duo as the technology they use is faster and it has a different processor architecture which would benefit you massively if you want a gaming computer.
You didn't mention anything about a power supply, I would recommend this one ThermalTake 470W it is only 30W less, but will be so much better in terms of reliability and power performance. Perhaps have a look at this processor as well Core 2 Duo E4500. It is only a little bit more expensive, and is based on the same sort of spec, of 800MHz, LGA775 and is also 2.0GHz. If you went for the parts I have mentioned in this reply then I am sure it will be a good system.
:D
 
Well, normally, going with a Pentium is bad, but the Pentium E series is a slightly (very, very slightly) handicapped Core 2. The chips use the Allendale core, like some of the Core 2 Duo's do. The main differences are the 800MHz FSB and the 1MB cache versus the 1066/1333MHz FSB and the 2/4MB cache.

Definitely invest in a better power supply---I totally agree. A cheap power supply is usually cheap for a reason, and those are the ones you don't want. Spend a little extra on one.

Here's a few more suggestions:
Silverstone Strider ST40F 400W
Corsair VX450 450W
OCZ StealthXStream 500W

I'm not sure if the Thermaltake unit suggested uses the CWT platform like current Toughpower and Purepower lines do. If it does, it'll be an excellent unit.
Silverstone uses their own platform from what I recall, and the Corsair VX and TX units use CWT. OCZ has been using FSP/Fortron. CWT has been what Antec has used quite often, and FSP has been well regarded for years.
 
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