The GPU is the problem here. It just doesn't have the grunt to run modern games, and the RAM would be a bottleneck even if it could.
Windows 7 is close to using all of your RAM by itself. I think it's time for an upgrade when it's in your budget. You could probably spend $600 on a computer that would be something you're really proud of for PC gaming if you build it yourself.
Do you thing that this one is better for games?
Nvidia gforce 8800 ultra , 768 vid. memory, 386 bit
3 gb ram, ddr2
processor triplecore amd phenom x3 8400, 2100 mhz ( 10.5 x 200)
Do you think that this one is better for games?
Nvidia gforce 8800 ultra , 768 vid. memory, 386 bit
3 gb ram, ddr2
processor triplecore amd phenom x3 8400, 2100 mhz ( 10.5 x 200)