The chassis and PSU are only a small part of the cost of a new PC, so it doesn't make much sense to upgrade around them. This is especially true if the PSU is generic, because in that case it isn't likely to provide anywhere near the power output it claims. If I was in your position, I would replace the video card and start saving to buy a new PC if that's the route you want to take. That way you'll have 2 working PCs (you can always sell one or give it to a friend or relative!), instead of just one plus a bunch of worthless and outdated spare parts.
P.S. - If you're heavily into Linux, note that NVidia currently has much better Linux drivers than ATI. Much, much much better. So it may be worth considering an NVidia replacement instead. You can probably get a used 6xxx series GeForce for a good price.





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