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Then definiately upgrade the video card first. After that, if you have enough money left over, look at a new motherboard and CPU.
I just looked at your spec again and I missed that you already have 512MB RAM, forgive me for missing it earlier. My order would be:
Video Card - Definitely a money choice, really nice new ones are $400+, but you can get a nice one for $200 that will play everything really well, just not cutting edge.
MB and CPU - Another money choice here, I am an Intel fan so I am using a P4 3.0Ghz HT on my gaming system, and I am very pleased. It isn't quite top of the line so it is cheaper.
RAM (another 512, or probably faster with new MB)
HD (faster / bigger) - Serial ATA is the way to go here
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"I've never understood how God could expect His creatures to pick the one true religion by faith - it strikes me as a sloppy way to run a universe." - Jubal Harshaw in Stranger in a Strange Land
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