I have the exact same card. It runs well enough without having to sacrifice too much. I knocked the view distance options down a couple of notches and that was all I needed. That being said you probably got it for the same reason I did. I was looking for a video card on the cheap and found it on Newegg for $60. So, no, it's not the best card. And yes, you will want to save up for a better one.
HDDs can be a bottleneck too. When I was researching parts for my new PC, I discovered a lot of the new HDDs are labelled 'green' and often run as slow as a notebook/laptop drive i.e. 5700rpm. I don't game with any less than 10K rpm and the faster read/write can help with the over all system. In my old machine I had 2 smaller HDDs and put them in RAID 0 which helped keep my now 5 year old machine up to the task for a lot longer.
I predict they will try to phase out the HDDs we have now in favor of solid state drives in a couple of years. Then we can all sit around and laugh about how HDD's used to be clunky devices that had moving parts while we watch our computers boot up in five seconds.