Oooo, looking at the pics, yeah I can just imagine those pinholes making the fan sound like a whistle (good one AyashiKaibutsu :beer: edit fixed bear emoticon

). Before adding a whole other blowhole, I would remove the front bezel and cut out the pinhole pattern "grill" as this would help airflow immensely. I've done this with two of four tools that I know of capable and reasonably cheap to pick up and use. The first and preferred way is with a pair of tin snips and the second and slightly more clean way (but somewhat more time consuming) is with a Dremel and fiberglass reinforced cutting wheels.
For tin snips, check out
this great thread. With Dremels, everything needed to know here is in the instruction manual, and the rest you just cut and take your time making passes and always wear protective eyewear.
The other two ways to deal with this are with a nibbler (cheapest of all, yet produces the least clean results though this may not matter since the intake is covered by the bezel

) and using a similarly sized hole saw with a drill.
Now with a freshly cut intake, I think that case needs some help with exhaust. Possibly a good 92mm fan out the top of the case. To minimize dust, you want to make sure there's more air going in than out though, so balance it out with the front intake fan with its new naked blowhole.
All cutting aside, I would not trust even the cheapest of systems with the included power supply as in my experience in the way of PSU's, you get what you pay for. It's likely to provide unclean power that is nowhere near its rated capacity (300W in this case) and die out quickly. I may be wrong as I've never dealt with this particular case/PSU, but I am willing to bet I'm not

As a replacement, I would look into an Antec 300W or 350W (SmartPSU/TruePower) or a Sparkle/Fortron unit of the same rating. Also I would remove the fan grills in the PSU as it restricts some airflow, not quite as much as the intake in this case, but it would help some (better cooling for the PSU=more stable/quantity of power output).
Good luck
