^ cheap powersupply wont likely damage anything... worst thing that will happen is it may die unexpectedly.. maybe, or be a bit less energy efficient then a more expensive one... and even that is questionable... i've used dirt cheap power supplys and never seen the power usage much different then premium ones.
i been using a cheap Ultra case 400watt powersupply in a security monitoring pc for almost 3 years and it runs 24 hrs a day non stop with cpu usage about 70-80% all day long and no computer components have died and the power usage is not anything higher then expected. and the power supply was actually cheaper then the one your using.
500watt should run all ur stuff fine i think also. if you try to overclock your cpu you may run into issues but maybe not.
that video card says it needs 140w, and ur cpu will only need around 100w at max, then that leaves a good amount left over for the motherboard and hard drives to use what they need. hard drives at max will need 15watts and less then 3-5watts at idle. probably the optical drive would use similar power as the hard drive when its being actively used. lots of room left on that power supply i would say.
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