OP: I buy and resell several of these a month. Here's my two cents:
1) 2x X5355 ($120 - $150; eBay):
http://www.ebay.com/sch/CPUs-Processors-/164/i.html?LH_BIN=1&_sop=15&_nkw=x5355 (You can get better deals if you shop around)
2) Up to 16GB RAM ($56/4GB; Amazon):
http://www.amazon.com/gp/product/B002ORUUAC/ref=oh_details_o02_s00_i00 (I'ev seen RAM like this go for as low as $7.50/GB if you look hard enough)
3) ATI Radeon HD 5770 ($70 - $100; eBay):
http://www.ebay.com/sch/i.html?_sacat=0&_nkw=xfx 5770&_sop=1 (ZNFC or ZHFC have both worked flawlessly for me; see #4 below)
4) GPU Power Cable ($12.50; Amazon):
http://www.amazon.com/gp/product/B002UR1654/ref=oh_details_o00_s00_i00 (Needed for each 5770 you install; 2 needed for 5870, 6870, and some others)
This is by no means the "maximum" upgrade path available to you, but in my experience, it is the best bang-for-buck. If you get an extra 8GB RAM, perform the CPU surgery and drop in a 5770, you're "only" looking at $300-$350 to upgrade to a crazy powerful machine pushing upwards of 10,400 on Geekbench.