Computer Upgrade

This is my current system: (copied from dxdiag)

General

Operating System: Windows 7 Ultimate 32-bit (6.1, Build 7600) (7600.win7_gdr.100618-1621)
Language: English (Regional Setting: English)
System Manufacturer: Gigabyte Technology Co., Ltd.
System Model: G33M-S2L
BIOS: Award Modular BIOS v6.00PG
Processor: Intel(R) Core(TM)2 Duo CPU E8500 @ 3.16GHz (2 CPUs), ~3.2GHz
Memory: 4096MB RAM - DDR PC2-6400 x2
Available OS Memory: 3326MB RAM
Page File: 1720MB used, 4930MB available

Display

Card name: ATI Radeon HD 4300/4500 Series
Manufacturer: ATI Technologies Inc.
Chip type: ATI display adapter (0x954F)
DAC type: Internal DAC(400MHz)
Device Key: Enum\PCI\VEN_1002&DEV_954F&SUBSYS_21D21458&REV_00
Display Memory: 2424 MB
Dedicated Memory: 1017 MB
Shared Memory: 1407 MB
Current Mode: 1440 x 900 (32 bit) (75Hz)
Monitor Name: Generic PnP Monitor
Monitor Model: N19W
Monitor Id: AOC190A
Native Mode: 1440 x 900(p) (59.887Hz)
Output Type: HD15

-The computer was modified a few years ago, the only things that werent changed were the sound card, power supply and hard drive..
-The gpu used to be a Geforce 880 gts 320mb, but the card overheated and died, so the current gpu is a cheap replacement.

Id like to upgrade my computer so it could play the latest games and for when battlefield 3 comes out, it can play it with ease on the highest settings. Could you advise what I could do to to achieve this?

I havent done this for a while, so im not very knowledgable about the newest compenents etc..

At the absolute minimum my budget would be £210 ish. I realise its a lot to ask with such a small budget, but id just like to see what id be able to do with this amount of money.

Thanks in advance, if you need any more information just let me know

the core2 duo is probably adequate for your gaming needs. The cheapest solution would probably be to get a decent graphics card and maybe a 1920x1080 monitor

BenQ G2222HDL 21.5" Widescreen LED Monitor - Black L102.99
http://www.overclockers.co.uk/show [...] 49&subcat=

Asus ATI Radeon HD 6850: L137.99
http://www.overclockers.co.uk/show [...] 56&subcat=

Is my processor good enough for the latest games or should i upgrade to something like an i7?