Regarding whether to wait and buy a complete system in a few months, or buy a "small" upgrade now depends on how soon you'll be able to afford the new system, and how desperate you are for better gaming. In my case, the money was available and it became a must have.
Still, with a 300W power supply I'd be concerned about any video card you might be looking at. Even if a video card does not eat up a crazy amount of power, you need to look at the amps required on the 12v rail. In this case the x1950 Pro needs to be supplied with atleast 30A on the 12v rail which is a minimum of 360Watt PSU. Under full 3d load the x1950 Pro only uses 65.7 Watts (23.2 at Idle and 36 at full 2d load).
As to what kind of system to max out Medieval 2, here's mine:
C2D e6300
Patriot 2GB DDR2 (PC2-6400)
Asus P5L-MX
Asus x1950 Pro 256MB
Seasonic M12 500W
All in a nice Antec Solo case
As to DX10, I'd definately wait for ATI to bring out their line of DX10 cards. Crysis isn't even out yet, so there's no need yet for the expensive 8800's. To be honest, I'd wait until christmas before jumping into DX10, and that's 8 months away.
Until then build a system that will be ready for DX10 gaming and then drop in a decent card once they have come down in price.
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