Natural Selection 2 is a must! Also at the very least switch out his motherboard with this one http://www.amazon.com/dp/B0055QYKQO/?tag=extension-kb-20
He's not using an FX-8320 or higher, so the motherboard I chose would work for him. If he were to upgrade, a motherboard like this would be much better:
Don't worry about not being able to run games, When I made the switch to doing the majority of my gaming on PC I was using a £200 budget PC a £75 graphics card and using a £15 wireless logitech keyboard and mouse combo and I could still run Borderlands 2 at mostly medium settings. I think that was the worst way to get back into PC gaming there is.
The only thing I can think of that hasn't been covered is that if you get an xbox controller make sure it's the wired USB version and not a wireless one or you'll need to get a receiver too.
As for games most of the stand out free to plays have been mentioned but Black Mesa is another good one to pick up http://www.blackmesasource.com/
A good website to check out is greenmangaming.com. They generally have a 20% discount code and on pre orders that goes up to 25%. The only catch is sometimes they might run out of Steam/Origin codes for a few hours with the more popular titles. I've never not got a code on launch day though so don't worry if their prices sometime seem too good to be true. I don't think anyone has mentioned gog.com either. They're good old games and they sell as you might have guessed good old games. They take older games and make them run on modern PCs and they're pretty cheap too. They also do newer games generally without DRM too.