I haven't bought one but given the specifications it is probably in the low-mid range for gaming systems that are built new now. It will partly depend on how you define decent settings but that should be capable of playing most modern games acceptably.
If you are willing to build it yourself then this has a far better graphics card, a more powerful PSU with the case and offers a fair bit of overclocking potential.
Abit IP35 (Socket 775) PCI-Express DDR2 Motherboard £72.99
(£85.76) £72.99
(£85.76)
G.Skill 2GB DDR2 NQ PC2-6400C5 (2x1GB) CAS5 Dual Channel Kit £29.99
(£35.24) £29.99
(£35.24)
OcUK GeForce 8800 GT 512MB GDDR3 HDTV/Dual DVI (PCI-Express) - Retail £144.99
(£170.36) £144.99
(£170.36)
Intel Core 2 Duo E2200 "LGA775 Conroe" 2.20GHz (800FSB) - Retail £51.99
(£61.09) £51.99
(£61.09)
Seagate Barracuda 7200.10 250GB SATA-II 16MB Cache - OEM (ST3250410AS) £38.99
(£45.81) £38.99
(£45.81)
Samsung SH-S203D 20x DVD±RW SATA Dual Layer ReWriter (Black) - OEM £14.99
(£17.61) £14.99
(£17.61)
Antec NSK 6580 Super Midi Tower Case - 430W Earth Watts PSU £57.99
(£68.14) £57.99
(£68.14)
Sub Total : £411.93
Shipping cost assumes delivery to UK Mainland with:
City Link Parcel Next Day (Delivered Mon-Fri)
(This can be changed during checkout) Shipping : £10.95
VAT is being charged at 17.5% VAT : £74.00
Total : £496.88