Processor is no problem.
There aren't many games these days that do well with only 256 MB of RAM. WinXP needs about 512 MB for proper operation anyway (if you want to run apps quickly that is.)
The 8500 is a good card but it is getting a bit dated. The regular retail 8500 was fully a match for any GF3 or GF3Ti. I doubt it will run the shaders at an acceptable rate, but I could be wrong. Still that should be adjustable. An 8500 is a half generation below a GF4 Ti4200, although the AIW you have used a lower clock and memory speed variant of the 8500 so it is taking an additional hit. If you are using the AIW features and want them in future cards, upgrade options get expensive.
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