If i only have the budget to either upgrade my cpu or video card, what should i upgrade and to what? Thanks guys!
Overclock your CPU to 3.6Ghz of you can. Or anything really. But that CPU is a good overclocker generally, my freind runs his at 3.78, and many people get them past 4 Ghz.
As for which component to upgrade, well I would upgrade you GPU. Try and get a Radeon 58## card, lots of bang for the buck.
I moved form an 8800GTS 512 to a Radeon 5850 and the Radeon is twice as fast and supports better anti-aliasing and DirectX11 etc, but its FAST too