You probably need to look at your graphics card first then your CPU. Modern games are extremely gfx dependent, at any decent resolution.I have a question:
I have a 3200+ (single core) on an Abit A8N-E with a GeForce 6600GT. It is, understandably starting to struggle a bit.
I don't have the cash to replace it all, but I could splash the cash for AMD X2 4000 (or faster) socket 939 and a 7 series GeForce.
I take it this should be OK for most modern games? Don't need 100fps+ just playable games.
If it isn't good enough I'll save the cash and spend it on console games instead.
A 6600GT is more of a HTPC card these days

Most people will probably also advocate buying a 3800+ and overclocking it, as opposed to buying a 4000+, 4200+ etc.
[edit: missed the bit about changing to the 7 series. My 7800GT is doing OK, still. Crysis was playable on a mix of lew/ medium settings. YMMV.
I wouldn't really consider buying a 7-series card now, however. Unless you can find one 2nd hand.]
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