Yea when i got the one i have now i ordered all the parts and assembled it so i can at least do that lol
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You'll need new RAM to go along with that Motherboard and processor, as new boards will not fit old RAM. I'd also go for a new case as building inside a proprietary case can range from annoying to impossible. Also computer cases are pretty cheap.
Sadly I have to echo that the machine is quite outdated and full rebuild would be for the best.
Absolutely not.
You could change the motherboard for more expensive if you want to (just remember to get 400+ series instead of 300, since they could not have updated bios and will not run ryzen 2 gen), however with stock cooler the power section on it will be perfectly fine due to the stock cooler air flow, and amd wraith coolers are really good made with copper pipes going around.
If you want to save a buck you may change the cpu from 2600x to 2600 without X so it will run cooler, since it is not going to overclock automaticly. None of the parts i have chosen in this build will slow down one or another. I have built about 10 desktops already for my friends, so you could relay on me.
Ultimately on your place i would wait for the GTX 1160 GPU to be released by Nvidia and ryzen 3 gen by AMD, so you could either have more efficient parts or cheaper.
Also one thing, never cheap out on the power supply unit, it is the crucial choice of yours, i recommend Seasonic (not evo series) or silentiumPC Vero series if it is available in the US. My two friends after a year of building the PC they both had a PSU failure, they have bought a cheap evga and corsair PSU and it end up for them with motherboard being broken and one of them have their GPU broken as well.
My advice. Don't. This is one of the very few things I urge people NOT to cut corners on. I'm not a tech expert so I can't say with certainty about your situation. When I upgraded from my old computer it was eight years old but I took exceptional care of it and only replaced the gpu once so I could play various games.
Just educate yourself on the pros and cons of your options and seek counsel from people who know a lot about the subject.