Seeking gaming performance upgrade, how crazy should i go?

Hey all, new to this forum so I hope I'm not immediately annoying anyone by posting.

I want to say thanks in advance to anyone that answers, I appreciate you reading and trying to help out.

Currently I am working with a system of the following specs:

Core2quad Q9400 (2.66 Ghz @ 3.2 Ghz)
OCZ reaper DDR2-1066 4GB
ASUS P5Q SE/2 Motherboard
HIS ATI Radeon HD4870 1GB
OCZ StealthXstream 600W power supply

My system performs pretty well overall, but recently have been a little disappointed with the gaming performance. My current theories are A) I need a new video card for sure, B) I also need more ram if i'm keeping this system for a while, and C) I sort of want to upgrade my whole system and build a core i7.

Does anyone think it would be worth it for me to committ the money (probably 1200 budget or so) to a new system? I am reluctant because I am unsure if the processor gains will be worth it from core2quad to core i7 (considering I'm already overclocked). The thing making me interested are the recent sale on processors at micro center, interest in a new video card, and probable performance gain from DDR3 ram over DDR2.

In trying to play Final Fantasy 14 beta, I run around 30 fps at 1366x768 resolution, and cannot play the game with acceptable performance at higher resolution, or any settings above "standard" or "medium" etc.

I appreciate any advice or opinions, and look forward to chatting with you all in the future.

Luke