Re: whole system upgrade or gfx card ??
@hskpunjabi, what techalomaniac said is true. Athlon II X4 quad core is available for 5.5k and it has much more VFM, thanks to two extra cores. Even a dual core Athlon II X2 250 that is available for 3.5k competes with E7400. and G31 mobos are very very basic.
my suggestion for you is to go for AMD rig with X4 630, 785G mobo and DDR3 RAM. This will be able to run most of the current gen games at low to medium settings and easily plays highdef content. then wait for the release of budget DX11 cards from ATI and nVidia (ATI's should be in by end of October and nVidia's should be in by next month).
that would make your rig better placed for next upgrades when compared to already stale E7400+G31+9xxxGT
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