CPU vs. GPU

[XSNiper]

In the coming months, especially December, I will need to start thinking about....upgrades....
What my dilemna is, is I don't know whether I should upgrade my CPU or GPU. I'm wondering what would be the best option for next-gen games? Do you think that n.g. games will take use of dual-core so much to not need a new GPU, or will I need a new GPU because my current one just doesn't have what it takes? Let me break it down for us visual people.

Athlon 64 3700+ ---> Athlon 64 X2 4800+

OR

7800GT 256 ---> X1900XT 512

I asked my friend the same question and he replied, "Can you play everything out, maxed?" and I said yes. (including oblivion, 12x10) However I'm not certain it (my pc) can handle games like UT2007 or GoW, Crysis, etc.
So in your opinion which route would be the most sensible?

(No C2D please, I only have $350 MAX)

 

[NulloModo]

I thought that Crysis was supposed to be a DX10 game, so, likely you won't be able to play it even with your intended upgrade path.

Do you do anything on your computer besides games? If so, a dual core CPU would be the obvious answer as the 7800 is still a very capable GPU.

EDIT:

And honestly, I'd say save your money, you have a capable system as it is, wait for either DX10 cards to come out (which should be by December, or early next year), or just stick it in a savings account for a complete new build for Vista.

 

[somecallmeTim]

...
And honestly, I'd say save your money, you have a capable system as it is, wait for either DX10 cards to come out (which should be by December, or early next year), or just stick it in a savings account for a complete new build for Vista.

I will second that... You could always get more drive space, that's always handy. if you "have" to upgrade, the CPU would be the choice. But I would hold off, save your $ towards more of an upgrade down the road.

Peace,
Tim