Why are you asking us if you need to upgrade? Does the video card you have do what you want it to? If you want to know if you have head room, then yeah, quite a bit actually. But you don't need a new one until the old one isn't performing how you want it to, at which point the inconvenience of not having a newer video card makes it worth it.
Now if you do want to upgrade, I'd look for a Radeon 9800 Pro, maybe even AIW. I shelled out just over $300 CDN for my All-In-Wonder and it was worth every maple leaf-embossed cent. I routinely play Half Life 2 and UT 2004 with the settings cranked right up; the graphics detail is amazing and the framerates always stay high. At this point it doesn't seem worth it to me to go to the X series or the new nVidia cards. If, however, you're hell-bent on using that PCI-E slot, then you'd probably do okay with an X700 or an nVidia 6600GT.
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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