Power Supplies 420W vs 500W

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page006

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I'm upgrading my system and on the site it "recommends" that put upgrade to the 500W power supply over the standard 420W supply that comes with the machine. Is this recommendation legitimate or will the extra 80W not really do anything productive for my new computer? I'm new to buying higher end customized systems and have no idea about the difference power supplies make.
 
Poor choice of words...I am buying a new computer:
CPU:AMD Athlonâ„¢ X2 4800+ Dual-Core CPU w/ HyperTransport Technology
Ram: 2GB (2x1GB) PC6400 DDR2/800 Dual Channel Memory
Video Card: NVIDIA GeForce 8800 GT 512MB 16X PCI Express

And the power supply would be an upgrade from the standard 420W that comes with the computer to a WIN-500XSPX APEVIA 500W JAVA Power Supply
 
Not sure, is Intel really that much better? I am on a kinda tight budget and all the Intel machines seem to be over $100 more. If it is that much better I will look into it but if there isn't a real noticeable difference I'll go the money saving route. Other than surfing the net and doing word documents this is primarily a gaming computer for AoC, Battlefield 3 and Starcraft 2...not sure if that makes a difference when choosing a CPU.
 
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