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As far as not being able to play the latest games with the highest settings... i would like to know what games. I have a 7800gt 256mb card and a amd3700+ with 2 gig of ram and i still play everything at the highest settings and very nice framerates. Alot of the newer games the bottleneck seems to be the processor power for framerates not the video card. Just make sure you keep a eye on the performance to price ratio and you will be a lot happier in the long run.
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