What to upgrade?

Ok, I the spec of my computer is: Microsoft Windows XP Home Edition Service Pack 3 (Build 2600), 1526.4 DDR2 Ram, 2.200 Ghz dual core and a NVIDIA GeForce 8400 GS 512 MB graphics card…

But what do I need to upgrade to play most modern games?
(I thought it sounded pretty med/high spec to me, but it isn’t)

The graphics card, I think.
Also - Windows.

I thought about the graphics card, but it’s a 512 MB one… So it should work…