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Video upgrade question

I've been out of the hardware loop for the past year, but I recently heard about the 7800 GS AGP card and the new 7900 budget card. I was wondering if either of these would be a good upgrade for my system (shown in sig.), or would my old CPU be too much of a bottleneck? I'm looking to be able to run Oblivion and in the future, some Unreal 3.0 engine games and still get decent visual quality and a decent framerate without having to buy a whole new system.
 
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