Looks pretty good, the video card is getting rather old and I would personally get something more powerful. It does depend on what you want to play.
Also, about the AMD/Intel thing, both of my computers have AMD processors in them, one of the computers is 6 years old. No problem whatsoever.
Whereas for nVidia, on 2 separate occasions with 2 whole separate computers, a driver update for a nVidia card has caused me to have to put in another hard drive and boot off that to get rid of the drivers. On one occasion it actually triggered an incompatibility between the OS and the Mobo and now that computer doesn't work anymore.
I've got an ATi in my current computer, and with overclocking I've made my card outperform a 9800GT in some tests while being 1/3 of the price.