Is it cost effective to upgrade processor, RAM and graphic card? Can it even be done?

I have an Acer Veriton M410 and want to upgrade the graphic card to play some online games. The motherboard currently has an AMD Athlon 64x2 5000 2.2 Ghz cpu, 1GB RAM and 160GB hard drive. It has an ATI Radeon x1200 graphics card. Can I upgrade the card to something faster? I will add more RAM - I think the max it can take is 8GB. Is it worth upgrading or should I put the money into a new system? My budget could go to $500-$600 if I need to purchase a new system. I am thinking of upgrading the CPU (if possible), the RAM and the graphics card.

Any advice and help is greatly appreciated. Thanks so much.
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  1. You are much, much better of building a new system.
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