I would go with option # 2 and go for a new case
you're going to have to know that your current PSU (power supply) is only good for cuurent setup and you're going to have to get another one
lets say you get this setup
a 9500GT is pretty weak video card and not really worth getting
Case
Antec 300
$55
(you can add 2 120mm fans to the intake of case - I would put in at least one more fan where you put your HDD's
http://www.newegg.com/Product/Produc...82E16811129042
and depending on your budget for your video card ($160 or so can get you excellent video card) but there are good ones around $100 but they won't have the long term gaming need you'd want)
something like this
SAPPHIRE 100255DDR4 Radeon HD 4670 512MB 128-bit GDDR4 PCI Express 2.0 x16 HDCP Ready CrossFire Supported Video Card
$80
after rebate $70
(compared to an xbox 360 this ideo card is 2x better)
http://www.newegg.com/Product/Produc...82E16814102818
and around $100 for a new PSU
something like this
PSU
Corsair 550w
$90
after rebate $70
http://www.newegg.com/Product/Produc...82E16817139004
ok now with the tutorial phew this is gonna be long post bare with me please
I think I'll post back if you want to go through and so I can write up the walkthrough with the best of my abilities
couple things to remember have read through your manual, its your friend and it'll tell you which wires and cables go where
your CPU will be the limiting factor but you can upgrade to any processor you want to
Motherboard specifications table
Part / Feature Specification / Support
Motherboard description
* Name: Irvine-GL6E
CPU/Processor
* Socket: 775
* Supports the following processors:
o Intel Core 2 Duo (Wolfsdale core) E8xxx (65W)
o Core 2 Duo E6xxx (Conroe core) up to E6850 (65W)
o Core 2 Duo E4xxx (Conroe core) up to E4400 (65W)
o Pentium E2xxx series (Conroe core) with Dual Core technology up to E2160 (65W)
o Celeron 4xx series (Conroe core) up to Celeron 440 (35W)
http://h10025.www1.hp.com/ewfrf/wc/d...758926&lang=en
and ram matters but you have 2gigs of ram so thats fine