Get the second one, imo.
Yes, you won't have as good of a video card, but it's more worthwhile overall.
The first build just isn't worth anything at all; DDR2 RAM, C2Q, probably an equally old power supply. It's not worth saving. Just everything is too old to even offer an upgrade path.
The second build at least supports DDR3 and has a reasonable CPU. Even though you won't be able to afford a new GPU, at least you won't have to throw the whole thing out in one more year, like you'd have to with the first option.