Coupla things. I need a budget to suggest a good GPU. 'not expensive' could mean anywhere between $20 and $300 for graphics cards.
Also, it could run W7 ultimate, but don't waste your money. Buy W7 home premium 64 oem and you will never notice any real difference besides the colors, which you can change.
And we are not supposed to talk about Uncle torrence on here.
oh and it would be awesome for games i you got a decent gpu.