I can tell you now you do not want to use the sound insulation. It makes absolutely no difference, apart from maybe lowering the sound of a mechanical drive a tiny bit but turns it into an insulated oven. In one of my many cases the same as this (I've had over 10) I managed to buy it. And yeah... Just trapped dust and made it like an oven.
The main mod people used to do then was to remove the grill from the rear fan. IE carve it out of the back of the case (the plastic cover). Or just remove the entire cover.
I have also run a NHD14 in one too. So you should get away with that.
You don't need to overdo the wattage of the PSU. Just make sure the fan is above the mobo. Do not flip it over or the PSU will not breathe. The original case had a Hipro PSU and was a 80mm fan in the back. So if anything a PSU with a 120 or 140mm fan in will get more heat out of the case.
Also. I am not sure you will get the lighting working either. There were two versions of the small PCB in the bottom of the case. One (the cheap one) had DIP switches on it to change the lighting. This would work no matter what. However.. Looking at your one? that looks like the £90 upgrade. IE, it was active and could be changed in Windows with the command centre software. Great right? well no. Unless your board has been named in its BIOS to be an Alienware it will reject it. IE, only OEM Alienware boards (which back then were either Asus or EVGA) with their BIOS modded with a specific tool from Alienware (which even with friends INSIDE the company I was NEVER able to get).
So yeah, if that wee board has DIP switches on it you can change the lighting and it will work. If it does not? you will basically need to rip it all out and DIY bulbs yourself. The bulbs in there as stock are 4 filament. As in, one red, one green, one blue. And the DIP switches would merge them and allow you to have like purple and yellow etc. It was an extremely over engineered system. Hence the absolute ton of wiring just for a few random bulbs dotted around and the 6 bulb front white panel that sits just in the front.