will everything work and is it good for gaming

All is fine apart from that power supply and graphics card. That power supply will not power a GTX 480, it won't even power any graphics card. If you want a 480, be prepared to spend more and get something like a Corsair TX 650 unit. That's a great PSU and will power a 480 with no problems.

The 480 is old but still a good performer, just be aware that they run hot, so you may want a case with better cooling, airflow and cable management features. Something like a Cooler Master HAF 912 or Corsair Carbide 300R would be a good choice.

Processor is overkill for gaming, get an FX-6100 and a Cooler Master Hyper 212+ cooler and overclock it. You don't need eight cores for gaming, you don't even really need six.
 
Not going to happen my friend. :/ Spend less on the graphics card if you absolutely have to and get something like a 6850 or a 6870. Sure, they won't be as fast as a GTX 480, but they'd be cheaper and less power hungry. The 6850 is around £110ish and the 6870 £140ish. Then you could keep the current case most likely and get a Corsair CX 500 power supply.
 
simple and basic, no. You can not use a cheap power supply at all. For a 480 you need at least a quality 600 watt unit. That means at least 50 USD, no sure how many pounds that is, but probably around 40 or so.
 
50 USD = £32 but knowing rip-off Britain the cheapest quality 600W PSU is around £50 - the Corsair CX 600. I probably still wouldn't run a 480 on a CX 600 anyway really.

Just get a cheaper, slower but more power efficient card if budget is a problem. Or drop the FX-8120 and go for an FX-4100 instead, then spend more money on your case and power supply.
 
There is no problem with running one on a 600 watt unit. I am and all of my issues are/were programming related.
 
Bad power supply. I had a CiT power supply once. It died within a year. Would not recommend. Only buy from trusted brands - Corsair, XFX, Seaonic, Antec, NZXT, OCZ.
 
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