It would be hard to configure a Core 2 Duo, plus motherboard, new RAM, and a graphics card within that budget. The least-expensive e6300 processor costs just over $180, a decent gaming motherboard would be at least $100, a gig of good DDR2 RAM also about $100, so that would leave only about $120 for the graphics card and everything else.
Assuming your current machine has regular DDR memory that can be re-used, and that the new system will primarily used for gaming over other applications, then a socket 939 Athlon 64 single core based machine will give you 95% of the CPU performance (in games only) of a Core 2 Duo, at less than half the price.
For example: an Athlon 64 3200+ retail (with heatsink/fan) for $61.99 including free shipping (http://www.newegg.com/Product/Produc...82E16819103535), eVGA makes a nice SLI-capable micro ATX NForce4 chipset board for $61.40 shipped (http://www.newegg.com/Product/Produc...82E16813188007), upgrade the RAM (assuming you've got 512mb, but want at least a gig) for about $60. That leaves over $300 for the graphics card (the most important single component for gaming) and other stuff, which should make a much more satisfying system for your (presumed) MTW2 needs. With that much left you might afford an x1950XT 256mb (http://www.newegg.com/Product/Produc...82E16814102067) or any one of a number of GeForce 7950GT's with 512mb (http://www.newegg.com/Product/Produc...k=&srchInDesc=).
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