Cost doesn't necessarily mean it was a bad PSU I got my cooler master 500 for cheap and its a decent unit and at times some of the better psu's out there can be had for at or around $40 so don't take that as a factor!!! Even if that old unit wasn't a good 650 watts that system requires nowhere near that much power. A good 350-400 watt psu would have been fine.
As KK said raidmax isn't the best of units and not the best of buys at that price. If you want to test to see if the psu is actually doa unplug everything and run the old paperclip test.
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