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Congrats to both the winners.
But what a coincidence the winners of the "INTERNATIONAL CONTEST" are both living in "CANADA".

A GPU's main job is to compute large amounts of data and provide graphical output. Folding only utilizes the compute aspect hence why "Compute_0" is pegged to the max. The utilization that Windows is showing is only 3D rendering i.e. whatever you can see on your screen. This utilization will go higher if you play games or watch videos.
 
TL;DR You're fine. Fold away.

Your GPU is actually working quite hard it seems, see the "Compute_0" graph on the picture you posted. That is the usage from F@H.
In the F@H control panel, you probably will see your CPU and GPU working on a WU on their own (go to your system tray, the icons in the bottom right corner, next to your time and right click the F@H logo and press the advanced control tab) and you will probably see two folding slots open.

Once there's a work unit completed and uploaded, then the stats should show.  They don't show up until then.  Points count, but not until the unit is done.  So, based on your screen shot, should be about 22 hours and then you should have your own stats page.

No Xeon is worth it that is that old. 
 
You will need to change windows liscence to the 64 bit to make use of more Ram.
 
PSU you would need ive allready mentioned.
 
You are better off getting something third gen and adding from there.
 
What are you going to use the PC for

$140usd with 8gb ram
https://www.ebay.com/itm/Dell-Optiplex-7020-Core-i5-4590-3-3ghz-8GB-DVDRW-500GB-HD-Mini-Tower-MT-Computer/232993127482?hash=item363f78fc3a:g:HS8AAOSwySZb3xur

You can get a mini tower for nearly the same price that will accept an ATX PSU and a full-size GPU.

Edit: sorry i dont have time to i wrote that in a hurry. I might get back to you in about 6 hours or something

Just started now! Great concept though. I have an average computer (laptop basically) with a core i5-5200U and Nvidia 920M and a mobile shared internet connection. ?
But I think it should be sufficient.

you are more or less forced to run it outside of the case due to inverted motherboard layout not to mention room. so yes, its not great, but its what you get to work with. 

This. But don't get that SFF PC, that power supply and GPU doesn't fit in it.

Core i 5 3rd gen Dell optiplex for about 120-150$. Upgrade to 8 GB of Ram
 
Get a 50$ 450 watt cx450 grey (2017)
 
Pick up used hd 7850 for about 50$
 
Pc: https://www.ebay.com/itm/Dell-OptiPlex-7010-SFF-Intel-Core-i5-3475S-2-9GHz-4GB-RAM-NO-HDD/163359863377?hash=item260901b251:g:7ZEAAOSwqo5bh~HC
 
GPU: https://www.ebay.com/itm/Visiontek-Radeon-HD-7850-2Gb-GDDR5-PCI-E-256-bit-Video-Card-USED/283242597868?hash=item41f2930dec:g:0fMAAOSwNpRb3dNu
 
PSU: https://pcpartpicker.com/product/Q7L7YJ/corsair-cx-2017-450w-80-bronze-certified-atx-power-supply-cp-9020120-na
 
Pick up an 8GB stick of DDR3 memmory locally for about 20$. 
 
SSD: https://pcpartpicker.com/product/FZF48d/inland-240gb-25-solid-state-drive-349365
 
Should land within budget

Every little bit helps man. 

Just started now! Great concept though. I have an average computer (laptop basically) with a core i5-5200U and Nvidia 920M and a mobile shared internet connection. ?
But I think it should be sufficient.