Ultra Budget Upgrade - G2020 vs. G860?

I'm looking to squeeze a few more FPS out of Guild Wars 2 (cpu intensive MMO), Battlefield 3 and a few other shooters in addition to having some ability to play modern games at reasonable res (maybe).

I want to do this on the ultra cheap ($150-250?)

My current (old) rig:
Intel e5200 Wolfdale OC'd @ 3GHz
Asus P5Q SE
ASUS EN9600GT 512MB
4GB (2x2GB) Corsair DDR2 800
WD Blue 640GB 7200rpm
XIGMATEK HDT-SD964 92mm Rifle CPU Cooler
OCZ StealthXStream 500W psu
Cooler Master Centurion 590 case

I was thinking of just upgrading the MB, CPU, and RAM hoping my 9600GT can hang in there for a bit longer?

How about this:
Intel G2020 2.9GHz (any OC potential at all?) ($50)
MSI B75MA-E33 ($60)
(2x4GB) Crucial Ballistix Sport 8GB DDR3-1600 ($52)

~$175 after tax from Microcenter

Thoughts, opinions, scrutiny, malicious comments welcome

The CPU likely wont allow you to turn up the resolution. You are running on a 5 year old card trying to play modern games.

That said, I would keep your current system and upgrade the GPU and go 2x4GB ram for BF3.

The system you chose I wouldnt upgrade to personally. That mobo is CHEAP, no heatsink on the power bits, and itsnt made for overclocking and may not even have the options to do so.

Thanks for your input. What GPU would you recommend for an upgrade? (PS I'll also try to get my e5200 up to 3.5GHz if I can, going from 2.5 to 3.0GHz gave me at least 5-10 FPS in GW2)

For $175... (same as your upgrade...) 7850 2GB would be my choice.