List your full system specs and OC stats if you are overclocking. A good overclock could help if you haven't done so already but could be limited by your motherboard as I would presume Emerald is getting at.
Also, an underpowered power supply could cause your video card to reduce its performance to keep from getting damaged so please provide in good detail of all the parts in your system if possible...
i can play games like BFBC 2 and stuff max graphics, but then some games, like ARMA II it struggles. I dont know if its my cpu, or my graphics card bottle necking the system.
Would it be stupid to upgrade the process and card? I guess is what im really asking lol.
mayankleoboy1 is right: the best (true) upgrade you can make is waiting up until LGA2011 launches...what you need to do is identify the actually cause(s) - it could be hardware, software or both issues that may need addressing. But as everyone here is suggesting, provide concrete details of your system.
Core i7 LGA 1366 is still the go to platform for most enthusiast...i7-920 is loved by many (even I, though I've never owned one, yet I'm budgeting for a Core i5 2500K Sandy Bridge Build).
Unless your a die hard Intel fan, you should also consider waiting to see what Bulldozer brings to the table. In the least, it should bring a pricing restructure that may allow you to get more for less OR it may actually perform on par with Intel offerings and may still be a better price.
i can play games like BFBC 2 and stuff max graphics, but then some games, like ARMA II it struggles....
Your PC is fine and the only logical upgrade at this moment will be to the HD69xx GPU's or GTX 570/580.
I am assuming these "games" such as ARMA 2 are either extremely intensive (such as metro etc) or just badly coded (Arma 2).
If its only ARMA 2 that you have problems in then you don't need to worry. BIS didn't do a good job coding their games so even the best systems will usually hover around 40-50 fps with big dips here and there (im getting 24-30 fps constantly no matter what settings :X).