Upgrade from 8600 GT ------> ???

I want to upgrade before the end of this year but have not too much about which video card. I am currently running a

Core 2 Duo E6420 @ 2.13 Ghz

2 x 1 gig DDR2 667 RAM

256 MB 8600 GT DDR3

375 Watt Power Supply

I am thinking of upgrading to a 320 MB 8800 GTS but currently do not have the budget and possible the power. Is something like the 7950 GT worth the upgrade? I would like to play newer games 1280 x 1024 or higher with lots of AA and AF. Or should I wait until Nvidia releases their 8900/9800 series cards or a 8800 GTS pricedrop?

My budget is less than $200.

You will need a new psu for those kind of cards. imho i think you should wait a while since you already have the 8600gt, its not that bad.

If you do decide to upgrade between the 320mb 8800gts and 7950gt, i would go with the 8800gts only costs a little more, is better and will be able to play in dx10.