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An option you might wish to consider (if you do want to replace the CPU, RAM and board) is an AMD APU. Basically, CPU + GPU on the same chip and the top end A10 (which I have) has a quad core CPU and will game at medium 1080p (so probably very high at 1280 x 1024).
If you want to hang on a bit longer and just upgrade the GPU, it depends how much you're willing to spend - an HD 7750 is the entry level AMD card with their most up to date architecture, so you could start there (if you want NVidia, rough equivalent would be GT 650)
im suprised the liteon 300w can run the gts250
http://pcpartpicker.com/p/1P6Cj
There is no point replacing GTS 250 with HD 7750 since they are basicly same power.
There's the 250 ^ vs newer cards, I agree with Rumple the 7750 isn't a big enough jump.
http://www.tomshardware.com/reviews/gaming-graphics-card-review,3107-7.html
After that, I guess it's the motherboard but thankfully that still seems a way off for now. Thanks for your help everyone, this really is an excellent community. :)
What was your budget for the upgrade?
Here is a build I designed for you as a combination of office and modest gaming PC. You can later upgrade it with a dedicated graphics card and I would recommend a AMD Radeon R7 260X or above. It can also be used with some select lesser graphics cards in "Dual Graphics Crossfire" to use both the graphics card and the APU integrated graphics for graphics tasks at the same time. However you will achieve more GFLOPS and better results with a R7 260X or better instead. The build also uses a socket FM2+ motherboard so it can be upgraded to a later generation of AMD APU that has not yet been released which is called Kaveri.
AMD
http://pcpartpicker.com/p/1P9bh
Base Total: $550.82
Promo Discounts: -$4.99
Mail-in Rebates: -$20.00
Total: $525.83
For the sake of mentioning Intel & Nvidia (I'm a AMD user myself) you could build a machine with a 4th gen i3 and a dedicated card also, though this would suck more power than a APU without a dedicated card and also cost more up front.
Intel + Nvidia
http://pcpartpicker.com/p/1P9ui
Base Total: $656.82
Promo Discounts: -$4.99
Mail-in Rebates: -$45.00
Shipping: $17.50
Total: $624.33
Something like one of these 3 might be perfect for you if you want to be able to overclock later on down the road and might take your gaming a bit more seriously in the mean time. These are all AMD systems. I personally prefer AMD. They're also all cheaper than the Intel + Nvidia build I posted above, though if you add in the 16GB of RAM then the most expensive might be about the same price. Personally I would recommend the bottom 2 as being significantly higher performance than the Intel + Nvidia build in both CPU and graphics and like I said you can add the same 16GB RAM kit in substitution for the 8GB kit used.
http://pcpartpicker.com/user/Rove/saved/1Uj5
http://pcpartpicker.com/user/Rove/saved/1QN1
http://pcpartpicker.com/user/Rove/saved/2766
Here's the rest of my builds also.
http://pcpartpicker.com/user/Rove/saved/
I'm sure you're right and I'm sure that's what will eventually happen, but given my cashflow I'm having to do this bit by bit. When my motherboard is actually obselete and incapable of running the majority of new games then hopefully I'll have the funds to replace it.