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Yeah, DEFINATELY get a new system if your system is that old. You can put all kinds of upgrades on that system and still have a slow system.
Like Headless says, you can get a nice new system for $1000. Dig around Dell's or Gateway's sites and see what you can build. I'd recommend Dell though, but Gateway is decent.
Anyways, you can sink a lot of money into your old system and still have an old system. If you buy new, you'll have new everything, plus a lot of extras like faster ram, a much better video card, a 17 inch monitor, must faster processor. If you had to piece those items into your old system, it'd cost you well over $1000.
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