You would definitely see an improvement with a new graphics card. A gtx 460 can be had used in your price range and should be around double the performance of your 9800gt. A GTX 560 is even a bit faster, but would push your budget. Really that's all there is on the Nvidia side of things right now. If you want a new card in your budget you are either going to have to go to AMD (HD 7770 would fit the bill and can be had on sale for $89.99...that was the lowest price I have seen on one yet), or wait to see what NVidia's 650 is like when it gets released (rumour has them being released on the 12th...so only a week away).
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Desktop: X3 710, 4GB DDR2 1066, MSI Cyclone GTX 460, Seasonic S12II 500W
Away from home light Gamer: Acer Aspire 15.6", A8-3500m, 4GB 1333
Internet/General Use: Lenovo B570 15.6", i3 2330m, 4gb 1066mhz
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