Do I REALLY need to upgrade?

You might want to research mouse lag as a separate issue. There can be many causes.

As to the adequacy of your cpu or graphics card, try a couple of tests:

1) Run your games, but reduce the resolution and eye candy to a minimum. This will simulate what will happen if you upgrade to a stronger graphics card. If your FPS improves, it indicates that your cpu is capable of driving a stronger graphics card to higher levels of FPS.

2) Keeping your graphics resolution and settings the same, reduce your cpu power. Do this by removing the overclock, or by using windows power management to set a maximum cpu% of perhaps 70%. If your FPS drops significantly, it indicates that your current cpu is a limiting factor, and that a faster cpu would help.

Thank you for all of the great comments!

First thing's first.
I couldn't believe I had VSync on... I turned it off and it definitely was a bit better, but still not up to par. Great suggestion, that's about half of my problem.

Great idea on the tests. I could only do the first part last night because I got home so late. I dumbed down the graphics to low settings and it played wonderfully. Though, of course, it didn't look great. I will check the CPU tonight, though I feel this test showed that the CPU was running fine. The graphics card has 2 gigs of memory and 2 GPU's on one board... I don't see how this $475 video card (when I bought it) could be so slow??

Overclocking sounds good and fun. What can I overclock besides the CPU? I read the overclocking tutorial on this site and it shows that you can only really get to 2.5ghz (from 2.33) is this really that significant? Is it possible to OC a video card?

I have little money, though, I can buy piece by piece. What are your suggestions as to what I should look at buying?

Thank you again!

I was thinking the CPU wouldn't be up to par with the rest. I need to do some research on CPU's compatible with that mobo (any suggestions?)

I just updated my graphics driver last night, but I had to leave the computer before it was finished, I will check if that made any difference tonight. Yes, my mouse is the wired WoW mouse.

I will 3Dmark when I get home. SS's to come!

One thing to take note on is I have noticed that BF2BC2 seriously heats up my GFX card's and I have to set the fan's on 100% to keep everything running smooth... You might want to try cranking up your fan speeds, could help out!

Great advice above though!

Yeah... is the issue still mouse lag or fps? Now that vsync is off, the mouse issue should be gone. Lowering game quality shouldn't increase mouse responsiveness, just fps.

Wow! Some great feedback. Unfortunately, I am at work right now, I'll check which slot it's in when I get home. That could possibly be the answer since I did not know about that... (darn nub It's my first homebuilt, though I thought I had advanced knowledge on all of this)

So, I should start looking for a faster quad core? you say 3.6+? I believe that is a good start and I should be able to pick that up sometime in the next upcoming months. The mouse acceleration speed would accelerate my mouse, though it will still do it 300-700 ms later than I wanted it to.

I will check the heat issue when I get home, I believe I set the fans to run at 85% full load. 100% on this thing is ridiculously loud. Though, even before the card gets a chance to work in the game, (I mean right when I load into it) I notice this "lag". It's like it doesn't matter when it gets hot.

Now that I think of it, I need to go check the FPS again. the screen is not choppy at all, it is just lagged from the movement of my mouse. Which, now thinking of it, seems like my CPU is the culprit (after hearing all of these suggestions). When I lowered the game quality, I was able to play very well because my actual movements matched up with the in-game movements. Set at high, it is almost impossible to play. Hearing easymoney9's CPU roundup, I feel now like my CPU isn't able to support my card.

Thank you for the roundup on legion Hardware, I will look in to buying a new CPU soon. I kind of figured I was going for more of a budget one than a gaming one when I bought it.

is .50ghz THAT much faster? I believe this site said I can safely OC my CPU to 2.65.

What are your opinions on an AMD chip. I figure, I have an ATI (AMD) card, and I know AMD doesn't make processors AS good as Intel, but Fry's has a great deal on a new Mobo/processor combination.

http://www.frys-electronics-ads.co [...] otherboard

and here is a review Vs. the Q9560
http://www.techspot.com/review/185-amd-phenom2-x4-965/

From what I am reading, it seems this is a great deal. A quad core 3.4 Ghz processor with 6mb L3 cache! Am I missing something? or is this a good deal that little, poor me shouldn't pass up?

You realize, of course, that going to an AMD CPU means a new mobo and RAM too? This could become a very expensive upgrade.
The Q8200 is partially crippled, with reduced or missing CPU caches; that's another thing that makes it slower than a Q9550, even though the MHz difference isn't that huge.

If you think you need more cpu, consider upgrading to something like a Q9550 or Q9650. You can find them on e-bay for $200-$250 or so. Market the Q8200 to defray the cost. No need to change out other parts.

With Sandy bridge on the horizon near the end of the year, I would not be in a hurry to buy a new cpu and motherboard.

Buy a Q6600 of ebay for like 80 bucks, OC that bad-ass to 3.4Ghz = job done.