Will i have problems with 1080p?

Video games are mostly gpu demanding and that card for 1080p gaming is not good, i'd get a 7850 2GB or 660 gtx 2GB.
Whats your current cpu ?

I am currently using AMD Phenom II X2 550 3.1ghz (dual core). I really don't want to buy another GPU, so i guess I am better off looking at lower resolution monitors?

You really need a new cpu+mobo, then if you dont want to sell and buy a new gpu, the 7770 will do 1080p just expect framerates of ~30-40 fps and at medium settings(with the i5 cpu in mind), if that doesn't bother you then you wont need new gpu card.
But you really need a new cpu a i3-3220 or i5-3470+h77mobo or i5-3570k+z77 mobo plus 4-8GB ram 1.5v 1600mhz

Yes, I already plan on getting a new CPU and motherboard. I am hoping to see some Christmas deals for a new i5 soon. I have 8gb of 1333mhz ram, that I am probably going to use for a little while before i upgrade. As for the GPU, I am probably going to keep it for another year or so.

Now im getting off topic, but is there a big difference between 1333 and 1600 mhz ram?

You *will* be able to play at 1080 but just have to accept lowered settings. BF3 even at medium would put the hurt on a 7770 (if I remember correctly). Had a 6770 on low and was still almost unplayable.

The answer to all of your questions is another question: What games do you play?

Well, i hope no BF3 people start hating on me, loll. But right now I've been playing a lot of Black Ops2. (Which is a CPU based game to what I've been reading?) I play a little Skyrim once in a while. I might want to get the BF3 this Christmas, and i might eventually Get the new MoH.

As of now, i don't really have many games that I have been playing on PC, cause i was playing games on Xbox till a couple weeks ago i just decided to make some cash and sell all my Xbox stuff.