That is the exact set up he has in it (Except for the RAM didn't work, so he has 512 of mine in it.)
He will be playing CS on high settings with the gibibyte of ram in the PC, with 4x AA and 8x AF, getting around 80fps I believe.
Yeah, you will need to get a copy of XP for it.
You can change the case to something else if you wish, as that one is a cube one, which is quite tight inside.
Things to upgrade however, will be the PSU and GPU.
Cisco CCNA, Comptia A+, 1/3 through CCNP