(Gaming) Upgrade or build new? (Prices in Post) (updated)

Upgrade or New?

Approximate Purchase Date: e.g.: This-next month

Budget Range: (e.g.: 300-400)300-500$
System Usage from Most to Least Important: (e.g.: Folding@Home, gaming, surfing the internet, watching movies)

Are you buying a monitor: No

Parts to Upgrade: (e.g.: CPU, mobo, RAM) GPU, PSU, and whatever else I need to upgrade, I'm not really sure.

Do you need to buy OS: Not sure

Preferred Website(s) for Parts: Newegg, but anywhere is fine.

Location: City, State/Region, Country - Austin, Texas, US

Parts Preferences: None

Overclocking: I'm gonna go Yes

SLI or Crossfire: Yes / No / Maybe (could you explain this to me?)

Your Monitor Resolution: 1600x900
Additional Comments: I'm wondering if I should upgrade this computer, if possible, what I would need to upgrade, or if I should save up a little more and get a new one. Also wondering if I could upgrade again in the future.

And Most Importantly, Why Are You Upgrading: Want to start PC gaming, looking for a start.

If I upgrade price range is 300-500
If I buy new it's 500-750

http://h10025.www1.hp.com/ewfrf/wc/document?docname=c02631327&tmp_task=prodinfoCategory&cc=us&dlc=en&lc=en&product=5051504#N968 That's my current computer.
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More about gaming upgrade build prices post updated
  1. And btw I only need this computer to run for about 3-4 years, so I'm leaning towards upgrading the Processor, GPU, PSU, and whatever else you feel is necessary to be able to play most of the games out already, on around medium, smoothly.
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