Should I upgrade my PC or just buy a new one?

This is what I currently have:
AMD 64bit Athlon 3500+ (Venice Core)
Gigabyte K8N Ultra9 (socket 939)
1Gb DDR400 (Kingston CL2.5)
X800GT 256MB
I am considering upgrading the memory and the GPU
I have encountered 3 problems:

First of all, in order to upgrade my GPU I will probably have to buy a new PSU. I currently have 400w (from HEC) and the card that I want requires 450w (HD 4850).

In addition to that, DDR400 memory seems rather expensive for such an old component. For example,
‎OCZ EL DDR PC-3200 2x1024MB Dual Channel Platinum XTC‎ costs almost as much as
‏DDR III 1333Mhz‎ - ‏3x1GB OCZ Platinum XTC Triple Channel‎. Which is rather odd (I would be glad if someone could explain why).

Finally, the CPU is old and many new games require Dual Core - this is the main question is my CPU just too old.

So, what do you think should I upgrade my PC or just save up some money and Buy a new one?

Sorry for the bad English, it isn’t my native tongue.
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More about should upgrade
  1. just get a new system, to go to dual core either athlon x2 4800 or opteron 180 both of which are expensive
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