Well firstly it's pretty easy to check for any free PCI-e slots just open up your case and look on the motherboard about 99% of computers have at least one free slot on the motherboard. You might want to check if you have AGP or PCI-e normally AGP slots are brown and PCI-e slots are normally black sometimes blue i believe, could be wrong,
PCI-e slot
http://www.viaarena.com/images/articles/pcie%20002.jpg
Secondly its dead easy to install a video card over an onboard card just plug it in when the PC is off but make sure you have taken the plug out too (you will be suprised how many people don't) and have your driver CD ready when windows asks you to install its drivers the whole process should take about 20 minutes at the most
Thirdly if you have an slim tower it shouldn't really cause too much cooling trouble as long as you have space for air to move around the card but you may need a low profile card (one that is slimmer) but i don't know what case you have
if you do need a low profile card then here is a site (US site i don't know much about it though as i'm Brittish so i shop at scan.co.uk for computer parts) you could try looking there but i'm sorry to say your choices could be a bit limited
http://www.directron.com/lowprofile.html
And finally you seem to have a pretty good CPU if its an Athlon64x2 you should be ok with that for now but as for RAM the more the better you can never have too much RAM, my PC can handle up to 4GB and i plan to buy an extra 2GB soon giving me 3GB
if you need help on installing video cards a simple guide is here its for installing an AGP card but the same applies for PCI-e
http://www.waterwheel.com/Guides/how_to/video/video_cards.htm
Oh and good luck and hope this helps, this is the best i can do as i'm not really an expert but i have had some experiance in installing video cards
I also plan to buy a video card soon hoping to get this little card here
http://www.scan.co.uk/Products/ProductInfo.asp?WebProductID=575217
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