Hi there
As an entry level system for someone who is on a budget, it will do, and that depends on what you are wanting to play on it in the first place.
Few things to bear in mind though:
Upgrading could become difficult as it is older technology. You could get an old quad-core cpu (the Core 2 Quad series) for a CPU upgrade. Should be able to pick those up on e-bay or something.
With the installed power supply you can upgrade the graphics to a GTX 750 or GTX 750 Ti.
And you should be able to still pick up DDR2 RAM as 3Gb is barely adequate for gaming. Vista or XP, however, is just too old, so you would then have to purchase at least Windows 7 and you would also want a 64-bit version if you going to move up to 4Gb RAM or higher.
My...