On a $200 budget, first replace the Crappermaster PSU. That should cost about $60. With your remaining $140 (plus wiggle) you should be able to get a HD6850, HD7770, or if you use most of the wiggle, a GTX560.
$60 and there's a $10 off promo code and a rebate: http://www.newegg.com/Product/Product.aspx?Item=N82E16817139027
Corsair CX500 V2 500W PSU
$134 and there's a $15 rebate: http://www.newegg.com/Product/Product.aspx?Item=N82E16814102908
I selected items with free shipping. You can get a HD6870 or GTX560 if you stretch that into your wiggle room.