With your CPU at stock, yes there will be a nice fat bottleneck at that resolution. You have 2 choices, either crank up that CPU to at least 3.4Ghz+ or upgrade your screen to at least a 1680x 1050 or greater. At low resolutions the CPU becomes the bottleneck, at high resolutions the GPU becomes the bottleneck.
Since my socket is AM2+ it also supports AM3 processors, so to fix the bottlenecking what processor would you recommend? Do i have to get any new cooling fans or liquid cooling for a new faster processor and also, is 650 watts enough? Im not really sure if the power calculators on other sites are reliable. As long as the cpu is not extensive as a 6x core in terms of money and speed.
Sure but i may be over worried about over heating. Thats how I think my old video card stopped working from a blown capacitor possibly from heat. Since then my systems been cooler than before with the new 5770.