Low FPS

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I've had my computer for about 5 years now and can easily run games like UT2004, Warcraft III, Command & Conquer... But when I get to the MMO's (WoW, EVE) My computer's FPS drops to about 10-30 and can get even worse in raids in WoW and some pvp in EVE.

Computer specs-
Video Card: ATI Radeon 9800 XT
Memory: 2x 512MB DDR RAM (Dual Channel, although I'm not sure if I've installed it correctly)
Processor: Pentium 4 Processor 3.2 GHz
Operating System: Windows XP Professional
Current Resolution: 1280 x 1024, 32 bit

Is my computer becoming obsolete? Should I upgrade my video card/memory/processor? Any help is much appreciated. If I left some part of my specs out, let me know and I'd be glad to post it. Thanks!
 
Also:

I am quite a noob in computer hardware. I'm not sure if when I built the computer, everything was installed correctly. If anyone has suggestions for me to check if I've installed a part correctly, also please let me know. Thanks again.
 
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