It's not fear mongering. That '550w' unit is a disaster waiting to happen. It's rated for 2 amps LESS than a seasonic 350 watter even. Assuming it's even honestly rated at 24 amps on the 12v, it would still be marginal for that system, and PSU is not the place you want to be marginal, especially with (at least) a $200 processor and $250 video card in the equation. If it was an old system with a P4 and 7600GT or something, fine, use the crappy PSU 'cause it doesn't really matter. The situation changes when running as close as he is to full capacity, I'd love to see the ripple coming out of that PSU. Bet it'd give Oklahoma Wolf a good chuckle.
Use Antec Basiq, use Corsair's $30 unit, use anything from the recommended list that's around here somewhere. Doesn't have to be an enthusiast PSU to be from a decent brand. The cheapie Corsair 430 is 80 'watts' less but 4 amps more where it counts, and it will actually deliver rated power.