xbox vs pc upgrade

I need something better... I have some older games I still have to start and finish on my PC... but in terms of gaming performance, it's getting to be out of date.
I have a P3 700Mhz with a 20gig hd and 256mb ram, running Win 2000 / NT 5.0, with an ATI Rage 128 Pro vid card.

Here are my options...

1. upgrade my computer situation:
   I could buy a new mobo and processor... but then I'd have to get different ram, and a new hd... all that jazz. Or, get some kind of basic nice new PC setup with no monitor / speakers / mouse / keyboard.
   
2. buy a modded Xbox
   I can buy an Xbox from a friend of mine, with a 120 gig hd for $400 Canadian plus the cost to ship it to me.

What do people think here?
What are the merits of these 2 options against one another? How long will each be a valid gaming set-up?

Any points at all will be welcome.

 

Also... would there be any way to hook up my pc monitor to an xbox?

 

I use this device for my xbox, u can use high res on vga moniter too its cool. http://www.xbreporter.com/xbox_vga_adapter.php

 

Thanks! Looks cool.

Any ideas here folks on this xbox deal / my choice?

 

if you can get the pc upgrades at good prices, i would do that. i myslef am lucky-i have a dearler who is also a family friend right down the street
u may want to focus on that processor :\

 

I use my PC much more than my xbox. So _I_ would upgrade my PC first. Just buy a normal xbox and rent your games you will save alot of money because you know what the games get boring very fast! Then you can save up faster for a PC upgrade and enjoy both.

 

Since I have got my XBOX I hardly play anyting on my PC. No matter what gaming platform you decide on yo are going to miss some great exclusive games. The XBOX is just convenient. They have even done an exceptable job making FPS games playable with the gamepads.

If you are an online player there is still only one real option, the PC.