Dell E520 - Possible upgrades?

Hello,

I have been searching the Internet for many leads but have come up, empty handed. I am new to these forums, so I am not sure whether or not this is the correct area to be posting this in.

I have been looking to upgrade my old computer an Dell Dimension E520 to a more powerful computer, so it is able to run 3d based programs without an hint of lag. I have looked into getting new computers, but I'd rather upgrade the computer I have, so I can use it for a few more years.

My system specifications are as follows:

Computer: Dell Dimension E520

OS: Windows 7 Ultimate x86 32 Bit

Bios: 2.04

Processor: Dual Core Intel Pentium D CPU 3.40GHz

Current Ram: 2Gb

Graphics Card:  NIVIDIA GeForce 7300 LE (512mb)

Power Supply: 300 Watts

Bios Screen: 

 

(I hope this is enough information) 

and I would like to upgrade the ram to make use of the two extra slots so I can get 8Gb's and also upgrade the graphics card to an.

Although something I really want to know, is if the dell Dimension can handle the windows 7 64 Bit or do I have to go down to a lower OS?

Also has anyone done this before and does anyone have any advise for a suitable graphics card that will not overtax my power supply. 

Thank you for reading, any help would be most appreciated.

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Sean Hall.