Why are you buying a PSU? If yours powers your current rig there is no reason to replace it.
Anyways, that 700W PSU is way bigger than you need for a single 6850, since a 500W is recommended and you could run as low as a quality 400W PSU. Also, at the super low price, no 80+ certification, and no active PFC, I wonder if this thing is going to explode. Now, I have nothing against PSUs without 80+ & active PFC, but they need to be quality supplies. Considering that nowadays those two features are standard skimping on them means it could be cheap junk. I can't find any information on this company or model. Use at your own risk.
If you actually need a PSU and only have $25, then I'd suggest something like the Corsair CX430V2 -
http://www.newegg.com/Product/Product.aspx?Item=N82E16817139026 - for $25 after rebate. It is on the small side but should power your 6850 and CPU no problem (unless you were running something like an overclocked 125W Thuban.
As for getting more performance out of your computer, going to 4GB is essential (it is so cheap anyways) since Windows 7 will use 1GB by itself which doesn't leave a lot for your games. Heck, even opening firefox for a while will consume that last GB. Spend the $15 and upgrade, just make sure it is matching speed, CAS latency, and voltage.
If that doesn't fix your problems (probably won't completely), then you can look into the more expensive ($80-100) CPU upgrade.