Absolutely correct, I misread the 3.3V (kept stopping to look out of the window searching for Stonechats).:doh:
So long as the voltages seem stable and the PSU isn't overloaded it should be OK. That said there is another point to consider with cheap PSUs; they usually lack some of the safety features of better PSUs, so when they fail they are more likely to damage the rest of the computer.
@adict2jane: Absolutely right about the accuracy of the voltages reported by motherboards. The voltage reported by the motherboard would depend not only on accuracy of the sensor taking the reading, but also where on the motherboard the reading is being taken.
If anyone is thinking of buying a new PSU here is a useful list which gives the OEM for many different branded PSUs -
Remember there were those Dell PSUs that had a standard ATX motherboard connector but wired up differently. Plug in a standard ATX PSU and goodbye motherboard.:a