It will play modern games at low resolutions without AA. The Radeon 4650 is a small step up. You might try looking for a used 8800gt. I just picked up another 4870 for $55 and a 9600gso for $35 on some other forums.
If you're really strapped for cash, (and who isn't), you might consider GT-240. They have way more memory bandwidth than the 220. Plus, they're all GDDR-5.
I think the performance is somewhere between a 8600 and an 8800GT.
One of these cards is always on sale dirt cheap, and usually with a big rebate. You just have to bide your time, and wait for a promotion on on of these in a decent brand. Normally, after rebate, they can be had for maybe 50 bucks.
I wouldn't consider a 220 at all if you're going to game. I doubt that one of these has too much more oomph than the new Intel "Core i" integrated graphics. Either solution is mostly aimed at HTPC.