I wouldn't recommend it at this point. If you absolutely, positively, must have a DX10 Nvidia chip for ultra-cheap, sure, it'll do... it just doesn't seem to be as up to snuff with what their last generation was like.
You'd probably be better getting a 7600GT. Usually a little more expensive, but it is considerd one of the best performers for a mid-low end card. Mine gets me very playable frame rates in most game with most settings turned on (with the exception of oblivion, but still looks nice).
Even the 8600gt is considered only on par with the 7600gt, so the 8500gt would be worse (cant seem to find a benchmark at the moment).
You could wait for the mid range AMD/ATI card and see how they compare.