Need video card advice

I need some advice. I'm working on my father's computer and I've come to the conclusion that his video card has died on him.
It works fine during startup, in the bios, and in safe mode. As soon as I try to go into normal windows it either blue screens and reboots, or the screen just goes black and the monitor displays a lack of signal message.
I deleted the drivers for the card and it will boot into normal windows then, but as soon as it does windows re-installs drivers for it and I'm right back where I was with a lack of signal.

It's an older system, sporting an asus p5ld2 rev 1 motherboard and the video card in question is a pretty lackluster nvidia 7300gs, I didn't open it to look for a manufacturer.

My question is this, the board has a pci express x16 slot, but the newer cards are sporting pci express revision 2 or 3. Are they backwards compatible? I know I can't get him anything really good, it'd just be choked by the cpu. And I know damn near anything would be better than that 7300gs he had.

I was kind of look at something like this.

Any advice would be helpful.
Thanks in advance!

Yes they are backwards compatible.
Yes that video you got him will work if his video card is indeed bad.

Does he play any kind of games on on the computer, you could probably spend half that for a GPU that will get him back on facebook/internet browsing.

At the moment he doesn't do any gaming, but he used to be into racing sims. He had a nascar title and the original NFS Hot Pursuit that he played with a steering wheel setup. He lost that in a fire and never bothered to replace it.
I found an old wheel and pedals buried in a closet of mine that I wanted to try to get working.
I wanted something a little better than a bare bones facebook card for him.

So I don't really need to worry about the pci express version then? I haven't really paid any attention to developments in that area for fear that I'd want to upgrade my own rig which is still suiting my needs nicely.

Yup, you'll be fine then.

That card will be perfect its always wise to leave a little headroom.