I'll second the PSU upgrade recommendation.. More so because the GTX 260 is still good enough to handle most of the games available currently at pretty high resolutions with some decent eye candy.. If you absolutely need to get a new video card right now then i recommend getting the GTX 460 1GB along with an XFX 750W Black Edition PSU.. It'll overshoot by your budget by a little amount but it is surely worth it.. The suggested PSU may be overkill for now but enables you to go SLI pretty comfortably.. And its a high quality (also modular) PSU none the less..
Confused on connectors and rails for the PSU.. also my PSU is at the top of my case if that helps with knowing what kind to get for mounting. Also thank you all for the help i have only built one PC and that was when i was around 14 years old im 24 now. I bought this PC but i know how to install the parts its just deciding on what to get sense i'm not up to date with whats best.
Yes, if you want to upgrade GPU then upgrade your PSU first, do not cheap out on PSU, it's the most important thing inside your PC...
Choose a trusted brands like Corsair, Antec, Seasonic, OCZ, SilverStone with 600W for a single graphic card.
Yes, those brands are expensive, but you get HIGH quality PSU...
I'm totally with you on a quality power supply, but disagree about 600W. I game on an E5200 @ 3.7 GHz (with lots of voltage) and a GTX260 overclocked to 720/1440/1188. PSU is a SeaSonic 330W. Have never had a hint of trouble, and never seen wall socket draw exceed 300W even running Furmark & Prime95.
IMHO, PSU requirements are *heavily* exaggerated by marketers, reviewers, and enthusiasts.