Ok, well you could get a much better super budget system for about $500. Mwave.com does a thing where they'll assemble all the parts in your cart for $80. That might be the best way to go...
Here's what I'd suggest, sorry I'm too lazy to get all the same parts from Mwave's site so you'll have to do a tad bit of looking...
Then as the mobo select the Biostar G6100 and at least 512mb ddr400 ram. that setup costs ~$173
Then buy case
Your on you own for a power supply, get the best one with leftover $$$ ask someone else, cause I'm in the dark psu wise.
Well, here's a good one someone recommended to me that's $40.
This is a good dvd burner burner
They should have pretty much the same stuff for about the same price on Mwave, and now you have a few choices...
All that is about $500 and it will play modern games better than my Radeon 9200. (By that I mean you can play all games like HL2 and Farcry at low-to med settings)
Then you add $80 for them to build it, so you're at $480. I'd suggest buying a stick of 128 or 256mb ram for the onboard GFX to use with the left over $20.
Now you have a machine that can play games better than any budget prebuild ever would.
I'd then sugggest upgrading with a 6600GT(~$120) or 6800GS(~$200) When you feel like the gfx are not good enuf.
I'd also suggest another 512mb stick of ram (~$35)
Other than that the system is a good budget gamer with room to upgrade.
Also, you'll need to buy windows...lol so It's $80 bucks when you buy the computer so it would total something like $560-580.
Sorry, that was probably really confusing, hope that help give you an alternative...
Other wise that system you posted is, acceptible, and it would allow you to upgrade a lot.