CPU or GPU Upgrade

reef

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I am currently running an AMD Athlon 64 X2 Dual Core Processor 4800+ 2.50 GHz and NVIDIA GeForce 8600 GT 512 MB Graphics on the Acer Manufactured F690GVM Motherboard. I want to know which of those two I should upgrade first, the processor or the graphics, to get the best out of modern games. Also if anyone have any suggestions on what to upgrade to from what I have that would be greatly appreciated as well. Thanks
 
Throw out the 8600GT first. How much do you have to spend, and what resolution is your monitor?
 
1280 by 1024 Pixels maximum but I run it at 1024 x 768.
I want to spend anywhere from $0 - $200 dollars max because I was looking for good stuff on sale at this time of the year, stuff that originally might be expensive that came down during the holiday seasons.
 
I agree that a new video card would be your best bet. We also need to know how many watts your power supply has you may also need a higher powered one to handle the new video card's requirements.
 
My PSU max output watt is 250 and the 8600 gt that I'm running is working fine, which did replace the stock Integrated ATI Radeonâ„¢ X1250 graphics for display needs when I bought the computer a year ago. So do I need a new power supply if I want to upgrade again from here and is 8800 gt really worth upgrading to like you mentioned JogaBonito when I can buy 9600 gt in my budget unless of course that wont fit?
 
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