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System upgrade for gaming

Last response: in Systems
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Currently have a old set up with athlon II x4, 5850gpu,8g ddr3 1600(all stock speeds) 60gig ssd sata II, 1tb 7200rpm for storage, 850w 80 cert power supply crossfire rdy

Budget 450$ max LESS is better

Games I actively play-bf3/wow
Objective- Be able to fraps smooth gameplay/render and create content (currently lags while fraps is up in fights where there are explosions/multiple characters)

Route im considering-
New-fx 8350/i5 3570k, new mobo, new ssd 120g (to fit OS and both games) this will run my budget out.

Old parts keeping-mid tower case, power supply, ram, video card (have a extra 5850 a friend is willing to donate for crossfire), hd with plans of upgrading gpu when funds become available

Questions-
1-Am i headed the right direction to achieve my objective?
2-will my gpu bottle neck me with and without crossfire?
3-Is there a better route i should be taking with my budget?
4-amd/intel?
5-will the changes in performance be be drastic with the route i am considering?

Priority-
1-meeting budget
2-gameplay and fraps quality
3-mutitasking
4-rendering speed

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