Yea that's true, If your friend gave it to you for free its likely its not of the best quality, After reading a recent issue of "Custom PC" i now know how important it really is to have a decent PSU, With your processor and that power supply your computer will be very unstable and may run very hot, Id recommend you buy a new power supply ( I reccomend Antec)
you may not think its that important but a powerful power supply is an immportant part of a pc otherwise may not be getting sufficiant power to certain parts.
im not even thinking about the computer that im gonna build yet. this is a crappy computer that im building on to. and WTF i blew my power supply last night... because.. someone .... was giving me "directions" and effing poof... its gone! now.. i dont have $40 to spend on a new psu.... but i guess when i do ill have to get a 400W or so.