Buy new computer or upgrade old one?

Save your money. You don't need to buy a new one or even upgrade. Just install Linux Ubuntu 8.04 and it'll be as good as when you bought it. Perhaps even better. ;) The OS is free as well as the applications.

If the motherboard is able to accept the new parts then just upgrade, would be cheaper.

If you're looking to get the best for your money, I'd suggest building a new one from scratch completely. A prebuilt system costs about twice the price of the raw parts, and putting together your computer yourself can take a hour at most. However, this requires pre-existing computer knowledge. Chances are, your old computer's PSU and case cooling will not be adequate for your new system, and you will burn out all your new parts and blow all of your money. You will probably also need a new motherboard to support a up-to-date graphics card.

If you need to upgrade that much, then it is worth looking at a new one (taking in consideration the work an sweat of upgrading yourself, finding compatible parts aso). On another note, If you are not really stuck on windows, I suggest giving Ubuntu a try. It will run much better on old hardware than windows does. You can also run from a LiveCD so you don't need to install or overwrite anything on your computer just to try it out. And you save money for the new equipment, as well as on future windows versions. since Ubuntu is free as are upgrades to new versions.

i'd suggest you wait a little bit longer, intel's going to release the nehalem in Q4 this year , that would reduce the price on older chips , eventhough they are older the price to performance ration is going to go through the roof . so by waiting a couple more months you could get a powerful pc by today's standard ( which is not that far off from the next-gen ) at a reduced price

what you said about your pc isn't too bad.if you wanna change all what you said would be too much.just better off to buy a new one.or...upgrade your ram and video card will do the same(almost) as well.

Intel Pentium Core2Duo, a new 1Gb VGA card, required a newer motherboard than you currently used, if I were you, I would buy a new fresh computer with the spesification you mention. The price is relatively equal with upgrading the old computer.

Get a new one. You'll get the best computer deals online. Right Here: http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2Fcomputer-pc-hardware-accessories-add-ons%2Fb%3Fie%3DUTF8%26node%3D541966&tag=tubeblog-20&linkCode=ur2&camp=1789&creative=9325