Yes you will need thermal grease when putting the processor into the new mobo, use Artic Silver 5.
If that's all the money you are willing to spend on a video card, then a 5700 Ultra or a Radeon 9600 XT/Pro is fine, however don't take the cheap way out and buy a Geforce 5200, the 5200 series is horrible.
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"A casual stroll through the lunatic asylum shows us that faith proves nothing." - Friedrich Nietzsche
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