^That is true. Can you fit an i3 into your budget, along with a refurbished HD7770? If not, you can get a new HD7750 (a HIS model; I've had good results from their cards) which is also a lot stronger than a GT640. This card is $80.
If you are interested in overclocking, you may wish to investigate how well that Athlon does when properly tweaked. Damric is a member of these forums who has done a lot of research on it, particularly regarding NB overclocks, which are needed to offset poor memory controller performance.