The processor underclocks itself under low loads---that's what you see.
Anyways--do you have a micro-ATX system or an ATX system? You can tell the difference as the former has 4 expansion slots and the latter 7.
The best performance boost you'll see is in the form of a new graphics card. There's also the new-motherboard option (as AMD600 isn't full compatible with AM2+/AM3 processors). I hear good things about the
Foxconn A79A-S motherboard ($165-$60 MIR=$105) as well, so that board, a good graphics card like a
Radeon HD4850, and a new power supply like a
Corsair 750TX (which would be total overkill, but should last you for many years) would be a very nice upgrade. When AM3 processors launch, grab one and it's drop-in compatible.
If you have more questions or points for discussion, I'll be back later.