Upgrade vs. Buy

I am kind of newbee to computer building and stuff.

Basically, I had a an acer desktop that went wrong. Maintanance asked crazy money so I fixed myself with spare parts of other old computer i found in the trash.

It is Currently running these specs:

Windows 7 Ultimate 64-bit
Hp Motherboard (does not support overclocking) LGA775
Intel Pentuin E2200 2.4 GHz Dual Core
4 GB DDR2 Ram (1x4GB) (used to be 2 GB before I fixed it)
Nvidia 8500GT 512 MB Graphics Card
230 Watts PSU
320 GB Hard Drive.

I know its not even close to the best but its good for a 2008 Computer.

I am not sure whether to sell it and buy a new one (i7-2600K and 16GB ram), or just upgrade this one to 16GB ram and upgrade graphics card.

It all depends whether do I need good specs and whether it will sells well for its price. Where I live (Dubai), its will sell for 100-150 USD although I want it to sell for atleast 250 USD.

Programs I use are Google Chrome and Skype. I would like to video edit and design games but I don't have good specs. However, the graphics card displays in 1080p which is good.

Does anyone have any opinions or past experience with this ?
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More about upgrade
  1. I think you're better off buying a new system, DDR2 is insanely expensive now. To upgrade to 16GB or RAM, you're looking at about 320 dollars. Good money which could be put to a more modern system. This is the problem you run into with trying upgrade older computers. And you can get 16GB DDR3 for a 1/3 of that.

    See here:
    DDR2
    http://www.newegg.com/Product/Product.aspx?Item=N82E16820231302
    DDR3
    http://www.newegg.com/Product/Product.aspx?Item=N82E16820220629

    The good news is for video editing, ironically (I know it sounds odd), you don't need a very powerful video card, as these programs are more CPU intensive, vs gaming which is video card intensive.
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