New Build / Questions regarding

I need to upgrade my computer. It is nearing 5 years running, and is a Dell Dimension 4700. I can no longer run newer games on the market due to my graphics card, after my 7600GT flopped on me. Here are my system specs:

Dell Dimension 4700
Windows XP SP3
P4 3.0Ghz
1.5gb ram
ATI X300/X550 Series (Had a 7600GT..but sadly...it has left us)
%*$* 19" Gateway CRT that's probably 10+ years old
SB Audigy 2 Sound Card
80GB Hard Drive

Now my problem, and my question to you folks.
I have been debating upgrading my graphics card to something not too expensive, say a 4670 HD, in order to not completely flop on any game I try to play. Then I thought, what's the point of a new graphics card if, even if I run better, I'm still looking at this old CRT. So I decided I needed a new monitor. I'm looking at either the 22" Acer X223Wbd or the 19" Acer X193WBd. I was wondering if I should go ahead and upgrade my just the graphics card and the monitor, or if I should go ahead and upgrade the rest of my system to keep up with today's standards. I'm afraid that getting a new graphics card won't be enough to keep my system on its feet/running as best it could in today's games, etc.

If I were to build a new system, I don't exactly have a huge budget. I'm not looking to get the absolute best parts, just ones that are fairly good, and can run most games with good settings. Here are some parts I was looking at:

Case: Antec Three Hundred
PSU: OCZ GameXStream OCZ600GXSSLI 600W
Mobo: GIGABYTE GA-EP45-UD3R
Processor: Intel e8400 3.0Ghz
RAM: G.SKILL 4GB (2 x 2GB) 240-Pin DDR2 800
GPU: Sapphire Radeon 4670 HD
Sound: On Board
HD: Seagate Barracuda 7200.10 250GB 7200 RPM
CD/DVD: LG 22X DVD±R DVD Burner
Vista 32bit (or 64?) Home-Premium: $99

Total: $740.88
With 19" Monitor: $870
With 22" Monitor: $910

What do you think of this build? Is there something I should consider spending a little extra on that would prove to be a good upgrade? Or is there something I should consider down-grading that could save me some cash and not hurt my performance much?

I am open to any and ALL suggestions, revisions, opinions, etc.!
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  1. I'll edit this post to make it useful. I've compiled my stuff into a wish list. Please feel free to modify the wish list if you know a way I can 1. Save money while not changing performance that much; or 2. Get better performance for the same price.

    Here's the list:

    http://secure.newegg.com/WishList/PublicWishDetail.aspx?WishListNumber=9721832
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