I would get the lower priced GPU, unless you go to very large monitor or need more graphics power for other reasons. Agree you need to upgrade the card.
Confused about the RAM setup. You are using 6 gig of memory. HP stuck you with 1 gig RAM sticks? I would run 8 gigs until 4 gig chips are affordable to you.
The CPU is fine. Any more processor is a watse of money