Your build is just fine, assuming the problem is easily to fix (i.e. overheating). I see no reason to recommend an upgrade. If I had to pick something to upgrade, I'd go with the biggest GPU you can afford, and that's it. With what you're looking to spend, that means either the HD 5970 or HD 5870.
However, you should start planning a new build. You're budget is already a good start. With about $700 (converting to US, as I don't think in pounds), you could easily afford a X4 955 with a good 8xx chipset motherboard (the ASRock 870 Extreme 3 and Asus M4A89GTD Pro/USB3 are excellent ones), 2x2 GB 1600 mhz CAS Latency 7 RAM (any brand except OCZ would be fine) and a HD 5850, 6870 or 5870 (depends on prices). Of course, that assumes your PSU, HDD and case are all still good, which they should be.