$300 graphics card

You will need to upgrade your PSU to run a good card. Not sure why people are always ragging on ATI drivers, they a very good these days. Aside from the PSU budget, the best GPU for that price range is the 5850 but it will cost you about 320, if thats over your budget, then consider a GTX275 or 4890 instead as they will offer the next best performance, a 5770 would produce little heat, provide DX11 capabilities but it is less powerful, it performs about the same as a 4870.

On newegg the cheapest 5850's are $309.99.
A 5850 will be bottlenecked by your CPU on dual/single threaded games.

Try to get a 5770, I don't get the rambling about ATI's drivers, never had a problem.

Ok i figured as much with the PSU.

Also would it help the bottlenecking if I over clocked my CPU?
I didnt trust myself to OC right now with the small PSU and lack of any serious cooling.

And as for the ATI drivers I actually havn't had any problems either I was just throwing it out there for whatever reason.