it will be an improvement but you would be wasting money on old technology.
I dont know any decent australian online stores so i priced something up on the first site i found.
Site was megapc.com.au
Description
1 CPU Intel - S775 - Intel Core 2 Duo E6300 Processor, 2MB L2 Cache, 1.86 GHz Clock Speed, Socket LGA775, FSB 1066MHz $282.70 ea
2 Motherboard Intel s775 - Asrock 775Dual-VSTA, Core 2, VIA chipset , 1066FSB, DDRII667, DDR 400, PCI-E, AGP, USB2.0, Audio $99.00 ea
3 Memory - DDR2 RAM - OCZ DDR2 PC2-4200, 1GB, 533MHz, Value Series $187.00 ea
4 Graphics Cards - PCI-E - Asus 7600GS Silent 256MB Graphics Card, 400MHz Core, 800MHz Memory, DVI and VGA $179.30 ea
Total: AU $748.00
The memory options they had were pretty crappy so i just stuck a cheapish one on there but you can get cheaper memory then that.
Now what you could do is just buy the motherboard and cpu as that asrock board excepts ddr or ddr2 memory and agp or pcie graphics cards so you can use your old ram and gfx card for the time being and save some cash to buy a decent graphics card like a 7900gt and dome decent ddr2 ram.
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