Need some expert advice on my i5 build

I am putting together my wish list for an upgrade to my 4 year old setup. I was one of the idiots who bought SimCity on day 1. When they offered a free game I jumped at Battle Field 3. However, when I tried multiplayer my computer had a heart attack. Its time for the old workhorse to get an upgrade.

The #1 build is the rock bottom minimum I am thinking of getting.
The #2 build has a few more upgrades that I am debating.
Current is what I am currently running (obviously)

My questions:
1. Is it worth getting 8gb of ram right away? I basically have 3 options. Get 2x2gb, get 1x4gb and add another stick when it becomes necessary, or just get 2x4gb and be done with it.

2. Do you see any real reason (other than storage space) to get a new hard drive? Either way I will get a new HDD eventually, but if it won't improve performance at all I will just wait on getting one.

3. I keep debating between the 7850 and the 7870. Is there a big enough difference to justify the extra cost? Any other suggestions for a GPU in the same price range?

4. Is my old PSU ok. When I bought it it had pretty good reviews and it has worked with zero problems for the last 4 years.

Thanks for any/all help.
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  1. I would get a 1tb hard drive. You might need a slightly better psu just because your old one is wearing out. Also, if you are gonna spend that much money on a 7870, you might as well just get a 7870le, or buy this 7870 instead.
    Also, that 7850 is way to expensive, get this one if you end up going with it
    If you are going to get a b75 motherboard, you might as well get a normal 3570. Or you could get a z77 motherboard so you can overclock well
    I would go with 8gb ram
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