Your graphics card is definitely the thing that’s holding you back the most, since it’s only a lower end card and you’re running at 1080p resolution, which is a pretty demanding resolution to game at. I too would recommend at least a 660 or better for a decent increase in performance (and settings).
Before buying a new graphics card however always make sure your power supply can handle the upgrade, since a higher end card will have higher requirements (not just in terms of wattage, but also amps on the 12v rail). If your current setup is a prebuilt system, then the PSU is more likely to be of lower wattage and/or a low quality brand, so it’s extra important to check the PSU specs and replace it if necessary.
There are various sites on the internet that can tell you what brands + models of PSU’s are good/decent and which should be avoided – if you find your PSU is the latter, then I would not recommend upgrading your GPU without also replacing the PSU.
With a better graphics card your CPU will still be a limiting factor – it’s not a bad CPU, but it’s only a hyper-threaded dual core, so it will be more of a limiting factor than a firstgen i5 of the 700 series would be, since it has only half the physical cores. The areas where you will notice this CPU limitation the most will be in busy areas, like WvW, cities, large dynamic events, etc. You could upgrade the CPU to a 700 model if your motherboard supports it, possibly even an i7 800, but upgrading any further would require a new motherboard as well, since they changed the socket for sandy and ivy bridge. Personally though I would upgrade the GPU first and then go from there.
