Your diagnosis, sir.
Vista is fine with the latest service packs, I don't know what you're going on about.
Try to find a AMD cpu that beats a i7 3960X
if you actually owned an AMD processor you'd know they're bang for your buck
you definitely want a new motherboard, 845 is stuff and was made about 10 years ago, which means it cannot support dual-core processors, and you're not going to get a 1TB IDE hard drive.
frankly though, the case has nonstandard connectors (they were standard back in 2003) for the motherboard so you can't just stick another one in and it'll work, unfortunately. You'll have to buy a case.
I'd also recommend going with Newegg.com if you're in the United States of America, as they have free shipping for almost every item, and awesome deals.
I still would need to know your price range, and what games you're aiming to play so I can help further.
