You'll probably want more than 120gb of storage. If you're on this tight of a budget, get a HDD, you can get 2TB for like $80, and then you can add an SSD later
Take out the sound card, onboard sound is just fine
Aftermarket cooler isn't necessary, unless you're overclocking the stock cooler is fine. Same with the extra case fan, my current case has a spot for one, but I've left it empty for over 4 years with no cooling problems
Cooling compound isn't necessary as the fan you selected has it preapplied (a stock cooler will usually also be preapplied, or include a small bottle of it)
Are these peripherals necessary:
Do you really need a headset
and speakers?
Do you need a new mouse, or is your current one fine?
processor is kinda gross
This, they're so outdated I didn't think they even sold them anymore
If you want something cheap that's fine, but there are far better options available for same price or maybe a little more if you get something modern
http://pcpartpicker.com/parts/partlist/
You need to save the build and sent us that link, that link there just us to our own current builds
get a different video card
http://pcpartpicker.com/part/asus-video-card-gtx770dc2oc2gd5
i suggest this
This card would be bottlenecked by his CPU selection