Ok, so my current plan of action is this..
1. Replace my factory 460w PSU with one that will support a better graphics card (around 550w-600w and make sure its a good brand).
2. Upgrade graphics card. Possibly the Radeon 6700 or 6800 series.
3. Add 2g of RAM to make it a total of 8g (because 12 is overkill).
4. MAYBE upgrade from i5 to i7 for my audio/video stuff.
That all makes sense now, I just didn't really know where to start. Thanks for the help. I wish it would let me select all of your replies as "best answer" but I can only do one, so I'm gonna go with Candleboy8 since he replied first. All of your answers were really helpful though, thanks again.