For what you want in a PC, that looks pretty decent to me. You'll probably want to beef it up with another gigabyte of RAM though. You'll also need to purchase an operating system.
I've got an Athlon XP 3700, which is no where near as powerful as that CPU. It's no Core 2 Duo but for basic computer use, it's good enough for me. I would say the X2 in that system is more then enough for your stated needs.
You'll want a new Hard drive most likely. Given the processor and memory speeds these days, the biggest bottleneck is a slow hard drive. Granted, it adds some extra jobs in migrating to a new PC, but nothing is stopping you from adding your old hard-drive in as a secondary storage device
Your older CD drives should work fine in the new system. XP/Vista will likely have a driver built in they can use without much trouble.
I tend to buy most of my PC stuff at Memory Express (
http://www.memoryexpress.com). Decent prices, they don't try to over sell you too much and the sales staff generally have a clue how to turn on a computer. They also sell upgrade systems designed to fit what you are doing, but they are a bit more expensive then the one you linked.