You are correct in that many games are limited by the CPU. This article here on Anandtech is great at showing how video cards and CPU's scale together in terms of performance with today's games:
http://www.anandtech.com/showdoc.html?i=1608
For example, in Jedi Knight 2 (a heavily modified QIII Engine Game, an excellent representation of today's gaming needs) the 7500 and the 8500 perform nearly identical at the speed you're at. And a GeForce 4 4200 (and most likely the 4400 and the 4600) performs only a few frames per second faster than the 7500 and 8500. Interestingly, even the difference between at GeForce2 MX400 and a GeForce4 4200 is very small (under 10 frames a second). This is nowhere near the case when the CPU is much faster (the 4200 nearly doubles the performance of the MX400 when the CPU is at 1700Mhz). The problem is that with a faster CPU, the MX400 stays exactly the same.
Here's what it comes down to for today's games:
If you have a 833Mhz CPU, spending $300+ on a video card will give you pretty much the same performance as spending $40 on a video card (GeForce 4 4600 vs. MX400). At your speed, your CPU is the bottleneck regardless.
Let's look quickly at tomorrow's games (ie Unreal 2) using the Unreal Performance Test 2002. With that benchmark, at 833Mhz there is about a 25% difference between the 7500 and the 8500 Radeon, but this translates to only about 5fps difference. The difference between a game running at 15 fps and 20fps is noticeable, but still horribly slow either way, and likely unplayable (30fps is the minimum for somewhat smooth gameplay). While this benchmark is still new and not finished (scores will likely improve as it gets closer to completion due to optimization), it serves to show that in tomorrow's games, faster cards will be better. It is interesting to note that most of the cards on that test (with the exception of the 4200, and the GeForce 3 cards to a lesser extent) perform exactly the same whether you run them on a 800Mhz or a 1733Mhz CPU.
So basically you've got a tough decision. Getting a cheaper card for today's games will give you the same performance compared with an expensive card and your CPU. Buying a faster and more expensive card will give you better performance in tomorrow's games.
What makes the decision really tough is, when do you plan on upgrading your CPU? If you plan on sticking with your 833Mhz CPU for a while, just get the cheaper card. If you plan on eventually getting a faster CPU, get the more expensive card now, and when you upgrade your CPU you'll notice better performance.