I am going to concentrate on FPS's as you said and on games where you can get a decent experience. So for example maybe you can run FEAR but not as it was intended to be played so for me this game is a pass for you right now.
All source games should run at a decent level (Counter Strike Source, Day of Defeat Source, Half Life 2 and Deathmatch + many mods) just that is hours and hours of fun. Battlefield 1942 with the Desert Combat mod (+ many other mods), Call of Duty, Call of Duty United Offensive, Unreal Tournament 2k4, Quake III Arena, The No one lives forever series, Warsow (it is free), America's Army also free, Medal of Honor Allied Assault + Expansions, Brothers in arms Road to Hill 30, Halo Combat Evolved, Jedi Knight series, Star Wars Republic Commando, Serious Sam series, Soldier of Fortune2 Double Helix, Max Payne 1 and 2 (they are not shooters but are very action packed). I would recommend to try the source + call of duty games and the free games first, thats enough to get you started, hope this helps!
Some advice if you wish to upgrade without spending that much, get a GeForce 6600GT pretty cheap this days and512megs of moreram
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