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You should be able to upgrade to a better videocard without trouble. Your current videocard is a major piece of crap, especially since it's onboard and shares your system RAM. If you do upgrade to a better AGP card your current PSU and case should be fine.
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"A Darwinian attacks his theory, seeking to find flaws. An ID believer defends his theory, seeking to conceal flaws." -Roger Ebert
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