Well, I finally broke down and bought the new system. Over a year later, but still... it was a hard decision to make. However, after passing on a much-needed upgrade for income tax time, I finally saved enough to push myself into buying. Not that I do much gaming these days, but I'm slowly getting back into it.
Anyway, I ended up spending right around $425. Here's what I got...
Geforce 9600GT 512MB DDR3 (low-end for gaming, but workable)
Athlon 64 X2 5200+
ASUS M2N68-VM AM2+
2GB DDR2 PC2 6400 800mHz (upgradeable to 8GB - room for growth)
250GB SATA2 HDD
20X DVD+/- R/RW DL
Onboard Sound
Onboard LAN
Black ATX Case
Dual 80MM Case Cooling Fans
650W PSU (yes, Ronin, I DID look into that too.

)
Since I'm keeping my old monitor, I had to get a DVI-I to VGA adapter also, which was cheap anyway.
So, for about $100 more I got a system that is about a year newer, with the parts necessary to play current and past games without too much issue. I'll upgrade again in a year, but I won't need to spend nearly as much to do so. And I'm ready to get the LCD screen to go with the new system... as soon as I can afford it.