Would this horribly bottleneck my graphics card?

It will run fine, although why buy old tech like that I ain't sure.

Old? What else do you recommend in the ~$200 range? I heard the 5770 has a TON of problems with windows 7 so i'm not buying that.

You can get a 4870 for $170 on the 'Egg...still newer than the 2xx series...

Okini, STFU.

OP, whilst the 260 is still a good card I just don't think you would be best off buying one of them unless you really don't want an ati card.

As to the 5770's problems I am not sure on that one. These things are always overstated on the internet as only those with problems complain.

You would be hard-pressed to bottleneck anything with a Q8200. You're good.

I would not, however, spend $200 on a DirectX 10 video card, and if I had to, I'd take the 4870 over that one. For any card above the $100 range, you're currently going to end up paying about a 20% premium for the same performance if you go with nvidia. They are not competitively priced at the high end right now.

I would go ahead and get the 5770. Those kinds of complaints happen any time a new card or a new OS comes out. It's basically just the process of the manufacturers ironing out the bugs through driver updates, and half the time, it's fixed by the time word has gotten around to you. There's nothing inherently wrong with the 5770, and it's definitely the best choice of the three IMO.

LOL.  

5770's problems are really overblown, ATI says 2 million Evergreen GPU's have shipped, when they said that is was basically between Cypress (5800), Juniper (5700), and Mobility.
5% or less was mobile, and 5700:5800 = 2:1, so:
1,000,000 x .95 = 950,000 Cypress/Juniper
2/3 of them were Juniper, so 950,000 x 2/3 = 63,333 chips shipped.

That was a month ago, so that's probably the minimum sold now.
Out of 63K there's what? 2000 problems?
2000/63,333 = 3%.

+1 5770,

Ya the GT260 is still a good card, but there are better cards, that are future proof, for cheaper. You can also wait for the 5830. The 5700's and 5800's had some issues yes, but there has been a fix for most. Also, there are plenty of resources on the web to get them working the way you want. I have a 5850, and when I installed it there was alot of lil issues i wasnt happy about like flickering, and a low clock 2d mode that stinks. Now I got a hotfixed beast that OC's like a champ, and created a profile that does not allow the card to underclock and  

If you can spend a bit more like 250, a 5830 comes out tomorrow and the specs and benchmarks so far look very promising.

+1, although you two thirds of 950,000 is 633,333, meaning 2,000 problems comes out to .3%