yes. Integrated graphics sucks, especially if you're planning on any games better than Solitaire.
It's too bad you can't up your budget by $200 - you'd have a lot more options if you could.
Systemax SG 1150 Gaming Desktop Computer - Intel Pentium Dual Core E2200, genuine Windows Vista® Home Premium SP1, MSI G31M, 4GB, 320GB, DVDRW, 9500GT, Flash Card Reader, GB LAN, 500Watts 981003 at TigerDirect.com
There's one that fits your requirements. The vidcard isn't the greatest thing on the planet, but it's a hell of a lot better than integrated graphics.
If you get that, use a hotmail email address when you're filling out the forms. Tiger Direct is pretty good, but they spam the hell out of you with daily advertisements for everything under the sun.
Newegg.com - Gaming, $500 - $750, Desktop PCs, Desktop PCs, PCs & Laptops
Newegg has a few too. Note that they're not exactly household names
If you have a monitor / keyboard / mouse already you might consider building your own. It isn't very hard at all, and you can generally get much better stuff for the same price, since you're not paying someone to assemble it for you.