Laptop or dinosaur upgrade?

Hello people,
I am planning to upgrade my laptop to a somewhat stronger machine. only have 550$ for this project.
My favorite games do no play on this comuter or have major graphic issues, wrong colors and display.
so I need that upgrade, i found this shop that modifies laptops and computers, could somebody tell me what is best to do?


Manufacturer: ASUSTeK Computer Inc.
Model:K50IJ Series
Processor: Celeron(R) Dual-Core CPU T3500 @ 2.10GHz (2 CPUs), ~2.1GHz
Memory: 3072MB RAM
Hard Drive: 299 GB Total
Video Card: Mobile Intel(R) 4 Series Express Chipset Family
Sound Card: Speakers (VIA High Definition Audio)

Or is need to upgrade my dinosaur 2001 computer?

Processor: Pentuim III 899MHz~
Motherboard: (Unknown)
Video Card: Nvidia (Unknown) 128 MB
Sound Card: Eminent PCI Soundcard 5.1 128 MB
Memory: 512MB RAM
Hard Drve: 75 GB Total`

Thank you in advance for your help!