Wanting to upgrade internet PC

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Well, you see, if the user only uses the PC for internet, e-mail and work, then her PC can last a while before buying a new one.

To get optimal performance out of it, get another 512MB RAM. I've seen some at Best Buy for $35. Also, the video card...I had the brilliant idea to game on a Geforce FX 5200...but wow...that's so not great for some new games.

So, get a 5200, but that's if you don't game or play very lite games. If not, get a 6200, 6600 OR a Radeon 9600 or 9800.
 
If you'll be doing lighter gaming and internet stuff you won't need a new system for that like vaderpro specced out, but that is an option if you want a whole new main system or something.
For upgrading your current one I would suggest:

Memory-$115
http://www.newegg.com/Product/Product.asp?Item=N82E16820144122

Graphics- $103
http://www.newegg.com/Product/Product.asp?Item=N82E16814102666
or if you want even better:
http://www.newegg.com/Product/Product.asp?Item=N82E16814143046

As for your monitor, I really like Samsung. Good prices, great monitors.Any of these will be fine depending on on what you want more, 17" or 19"
http://www.newegg.com/Product/Product.asp?Item=N82E16824001072
http://www.newegg.com/Product/Product.asp?Item=N82E16824001070
http://www.newegg.com/Product/Product.asp?Item=N82E16824001081

For what you've told us you'll be doing you proc is fine, your mobo may not support a much faster one anyways. Video is going to be a must and after that memory. Prosavage and Unichrome are the worst integrated graphics available right now, those have gotta go.
 
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