He was thinking of getting a $60 card so I wanted to throw the 8800GS out there as it is not a bad card for its price range.
I just hadn't seen it for less than $120 or so. For $95, you're right, it might be an alright option.
As for bottlenecking... it really depends what resolution and quality settings you want to use. If you game at 1280x1024 without much eye candy, then yeah, the power of an 8800GT or even a HD3850 is gonna be kinda pointless. But start jacking it up to 1680x1050 or 1920X1200 at high quality with AA and such, and even on a 3ghz P4 a higher end card is gonna show its advantages.
Still though, I dunno if it's worth it to you, considering those higher-end cards are double your intended budget anyhow. I have an 8600GT and it works fine for casual gaming. It usually won't let me turn up the quality settings all the way in most games, but performance is satisfactory at 1280x960 (my normal desktop resolution) or 1152x864. Overall, I'm happy with it for the $65 I paid.
Another thing to consider, though: Anyone know when the 9500GT is gonna be out? It's basically a die-shrunk 8600GT/GTS and will prolly fall into the sub-$100 price point. Should be nice and overclockable, plus lower power draw than the 8600-series.