CPU looks good, I would actually start with Ram, It's a bit like money.. The more you have, The more you can do with it.
With more memory in your PC, your PC will be able to load more textures without any slowdown
Secondly, Go get something bigger for GPU.
I would suggest at the very minimum an
XFX HD 5770 1GB ( If you don't have a large budget )
IF however you have a bigger budget you could opt for the
XFX HD 6870 1GB!It has a nice sized cooler and features the following.
Microsoft DirectX 11 Support
ATI Eyefinity Technology
AMD HD3D Technology
AMD Advanced Parallel Processing Technology
Microsoft Windows 7 Support
40nm Process Technology
3rd Generation TeraScale Engin
Chipset HD6870
Bus Type PCI-E 2.1
GPU Clock 900 MHz
Memory Bus 256 bit
Memory Clock 4.2 GHz
Memory Size 1 GB
Memory Type DDR5
Thermal Solution Fansink
Minimum Power Supply Requirement 500 Watt
Outputs
Max Supported Resolution (ANALOG) 2048 x 1536
Max Supported Resolution (DIGITAL) 2560 x 1600
Output - DVI 2
Output - HDMI 1
Output - mini DP 2
HD6870 Image