A e5200 with a g41 chipset wouldnt be a huge upgrade since he wouldnt be able to overclock at all on a g41, hes better off saving up a decent amount and getting a phenom.Newegg.com - Intel Pentium E5200 Wolfdale 2.5GHz 2MB L2 Cache LGA 775 65W Dual-Core Processor - Processors - Desktops
Newegg.com - GIGABYTE GA-G41M-ES2L LGA 775 Intel G41 Micro ATX Intel Motherboard - Intel Motherboards
Newegg.com - G.SKILL PI Black 4GB (2 x 2GB) 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400) Dual Channel Kit Desktop Memory Model F2-6400CL4D-4GBPI-B - Desktop Memory
Get those where you can find them, 293$ NZD.
Sell your existing parts (Motherboard, CPU, RAM) and all together you should get at least 70$ for the 3 parts, at least I'd imagine so.
Once that is done, throw in a extra 10$ or so and get this
Newegg.com - MSI R4830-T2D512 Radeon HD 4830 512MB 256-bit GDDR3 PCI Express 2.0 x16 HDCP Ready Video Card - Desktop Graphics / Video Cards