Upgrading to a 256mb video card will help a lot with video speed but all goes through the CPU.
Get both from Newegg.com for about what you want to spend.
Heres a cool vid card:Newegg
Heres a cool CPU:Newegg
Total price: $183.99 without shipping.
Take a look at Newegg.com. I bet you can find both for under $200 and will be able to link with your friends. No Problem.
Let us know,
Your Hardware Guide.