Upgrading Desktop for Gaming

I'm looking to upgrade my desktop computer. I want a good gaming PC that can run most of the latest games in max details, what would I need to improve on my computer to make this possible?

Graphics card: ATI Radeon HD 4200 - 3063MB
RAM: 8GB (7.75GB usable)
Processor:AMD Phenom II X4 840T Processor 2.90GHz
HDD: 1.5 TB

Please send me links of the recommended hardware for the improvements that I need to get my games running smoothly. I'm willing to spend 500-1000 dollars for this.
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More about upgrading desktop gaming
  1. You won't get max settings, but you definitely can improve most of your performance just by replacing the graphics cards. If you really want max settings on the latest games, you're gonna have to replace the whole system.
  2. Really you could for just under 1000$ you could keep you ram and HDD and get an i5 3570k which is 230$ get a decent 1155 motherboard for around 150ish$ and a 660ti which would max almost anything out assuming you have a good enough psu. Maybe something along these lines:

    CPU: http://www.newegg.com/Product/Product.aspx?Item=N82E16819116504

    Mobo: http://www.newegg.com/Product/Product.aspx?Item=N82E16813130665 (im partial to msi)

    Graphics Card: http://www.newegg.com/Product/Product.aspx?Item=N82E16814127697( again msi partial)

    All this assuming you PSU can handle this adds up to around 700$ after tax. So if your PSU cant handle that theres enough budget room for a new PSU(Power Supply)
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