the cheapest and easiest way to improve the performance of your computer is to double your ram. mo ram, mo betta!
If you have a mobo and OS that supports it, if you don't...its one of the most expensive.
For $300 over here in the UK you'd probably be able to get away with something like an AMD 940, ddr2 Mobo and 3gb of Ram.
The 940 has a habit of being a beastly overclocker making it the best bang for buck processor around at the moment.