A Radeon 9800 isn't exactly new any more, but unless you're playing 3D games it's not going to be holding your machine back. I would definitely get more RAM first.
A freezing problem might not, however, be due to the amount of hardware you have. It's more likely to be due to a failure, either in software or in hardware. So my suggestion (partly echoing others here) is to also get a new HD, do a fresh install of Windows on it, and then move your stuff to it from the old drive.
The two of those things together is unlikely to cost you more than $200, and possibly less if you shop wisely.
A freezing problem might not, however, be due to the amount of hardware you have. It's more likely to be due to a failure, either in software or in hardware. So my suggestion (partly echoing others here) is to also get a new HD, do a fresh install of Windows on it, and then move your stuff to it from the old drive.
The two of those things together is unlikely to cost you more than $200, and possibly less if you shop wisely.
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