It was decided that building a new system was the way to go. Like many of us I am on a budget in this economy. While I like to play games, I am not really a "gamer". With your advise, and research on my part I've come up with a system. I've been out of the hardware market for a long time so I would really appreciate input on compatibility and if the system makes sense. Any and all information, suggestions and guidance will be greatly appreciated!!
First change is that I would go for the ocz reaper HPC 2x2gb 1066 memory for $64.99 with free shipping at newegg. It has a $20 rebate. I would also look at the biostar TA-790GX-XE board for $89.99 with free shipping. I've had pretty good luck with biostar boards. Finally, I would try windows 7 RC for free. With 4 gigs of memory, the 64 bit version is very quick. It's a free download, and good for a year. If you don't like it, you can back up your files and get xp later. You may also want to look at the 5800 brisbane black edition, as it only uses 65 watts and should run cooler than the kuma.