Well you can look at it this way:
You already have a modern, fast computer. Do you already have a nice modern surround-sound system?
The only upgrade worth doing to your system is not a whole new system... at most I'd consider dropping in a fast GeForce 8800GT 512MB for under $300. Your screen is a 22" which means it runs at 1680x1050 maximum. Now if you were running a 30" screen at 2560x1600 I could see upgrading your video card to a 8800GTX or Ultra, but really, that 1950 of yours should handle any game at max graphics at 1680x1050, sans antialiasing possibly, for a while yet. I'm counting on my single 8800GTX to run all my games at 2560x1600 till next winter, and currently there isnt a game out there I don't run at max settings, except lowering the AA levels. I do have 4GB RAM but my CPU is slower than yours (quad core 2.4GHz, currently not overclocked; quad does nothing for gaming over dual core currently).
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