Not a bad base spec on the HP.
I'd say you should get a better PSU, it's the heart of a reliable, stable system and one component you should not really skimp on. Corsair, Antec, Seasonic, FSP, OCZ, Pc Power and Cooling and FSP are amongst the best, check around the E-tailers for the best prices.
If you're playing at or below 16x10 resolution, look at the 1Gb HD4870 or GTX260 and 500W or thereabouts, at 1920x1200 or 1920x1080, the GTX275/HD4890 with 550-600W is a better solution, but check that the PSU has the right connectors to power the selected card, do NOT use molex-to-PCI-E adaptors.