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I have 2 options.
upgrade my pc
Ati 4870
intel e8400
or just buy him a budget system (he is only 9 so he isnt playing COD/BC2), only games like WoW and older star wars games.
I would like to stay under $250 for CPU/MB/Mem (possibly a new vid card but that isnt that big of a deal as i can get that later)
Have you looked at a bare bones system? There's a couple good ones on the egg.
that system will be nice, provided you match it with a good GFX.....pick yourself up an old 9800 GTX from someone, they run pretty much anything out there, on decent settings, and get 4 GB of ram(pretty cheap)