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Personally, after owning both a XFX GTX260 216 Black (Factory Overclocked), a stock Asus GTX280 and a 4890 1Gb. I'd stick to Nvidia at this sort of money.
You can get a GTX 260 "Core 216" card, which will out preform almost all of the AMD/ATI cards, including the 4890 1Gb. The drivers are also more mature so you won't have to wait around for the performance tweaks for the 4890 to match the GTX 260s.
The Gainward on this site seems a good buy for £160.99: http://www.overclockers.co.uk/productlist.php?&groupid=701&catid=56&subid=927&sortby=priceAsc
Or shop around, there are good deals out there. Alternatively you might be able to pick up a 2nd hand GTX280 for slightly more than your budget, a few have gone for £180 and lower on the forums and the bay.
Agree with the above, the 260 is good but won't beat the 4890 in most test situations.
The 4870 and the 260 are on an even footing in most games, I saw a round somewhere recently and the ATI card was faster on 3 games and the Nvidia faster on the other 3 with them basically equal on the 7th title.
Either card will give you a nice boost, I have heard the stock Nvidia card is quieter than the stock Ati one but some of the cards now come with custom cooling solutions so will negate this, although I believe the Ati's still draw a fair bit more power on the PSU.
Below are a couple of benchmarks from Anandtech.
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Let me add my overclocked GTX260 to the list.ASUS GTX280 @ Stock Speeds 3DMark Vantage (Default Settings with 7.15.11.8208 Drivers)
P12559 3DMarks (CPU Score: 32102 / Graphics Score: 10440)
XFX GTX260 216 Black @ Factory Overclocks 3DMark Vantage (Default Settings with 7.15.11.8120 Drivers)
P12140 3DMarks (CPU Score: 32562 / Graphics Score: 10041)
4890 1Gb @ Stock Speeds 3DMark Vantage (Default Settings with 8.600.0.0 (9.4) Drivers)
P9327 3DMarks (CPU Score: 8486 / Graphics Score: 9646)
8800GTX @ Stock Speeds 3DMark Vantage (Default Settings with 7.15.11.8122 Drivers)
P7737 3DMarks (CPU Score: 26138 / Graphics Score: 6266)
SNIP)
Something wrong there. My 4870 scored way higher than your 4890![]()
May be the CPU is a bottleneck, according to the data the CPU was overclocked to 4051 MHz for the 4870. Was the 4870 at stock or overclocked?