AMD 550 processor PhenomX4
Asus Motherboard MA8LT LE
Crosair Value Select 2X 2GB (4GBRAM)
ATI Saphire 5770 GPU
Viewsonic 18.5 Monitor
Segate 500 GB HDD
Gigabyte Luxo X142 cabinet
I can spend about Rs/10,000 ($200-220) for a system upgrade. I play lot of games and would like all your suggestions in upgrading the system which would help increase my gaming experience or make it future proof.
Your Win 7 Ultimate includes both 32-bit as well as 64-bit versions. You must choose during installation. Re-install Win 7 Ultimate and choose the 64-bit version. Then you can increase the RAM to 8 GBs or higher. You can go up to 192 GBs depending on how much the motherboard will support; definitely more than 8 GBs.
Something you have to think about is that a 32-bit system only can "handle" 3,2 GB RAM, if putting in 4 GB the system would get SLOWER than if you put in 3 GB RAM. As other have mention 8 GB RAM is the absolute lowest sum if you want your PC to last for many years., but then you have to own a 64-bit Windows. When I am planning to buy a new PC I always choose out what components I want to have, and then wait a year and get those components for the half prize. Only that a product is 1 year old its still that high-end or mid-end good and NOT bad at all! To get your PC to last longer I highly recommend you to get two identical GPUs and run them in SLI/Crossfire, you will get almost the doubble quality/power when playing games. You will get more out of buying 2 "lesser" GPUs and run them togheder than buying 1 expensive GPU. To speed up the whole system I also recommend you to get two identical and smaller (say 60-80 GB each) SSDs and run them in RAID 0 mode and run them as system disc and install all your games on that, in that way you will get a great improvment overall! Then you can get a bigger HDD (2 TB) for a small cost and have all music, pictures and other media on that. Good luck!