PC upgrade?

I mainly use my computer to work on for school, and to play world of warcraft, or sometimes other games, but lately my framerates are really low (+- 10) when I play in big groups, or if there are many npcs on the screen

My current setup:

Manufacturer: MEDIONPC
Model: MS-7501
OS: Windows 7 ultimate 32-bit service pack 1
Processor: AMD Phenom 9500 Quad-Core ~2.2Ghz
Memory: 4096Mb RAM
Graphics card: NVIDIA GeForce 9600 GT
Display memory: 1904Mb
Dedicated memory: 497Mb
Shared memory: 1407Mb

Drive C:
Free space: 104.0Gb
Total space: 456.4Gb

Drive D:
Free Space 530.5Gb
Total Space: 953.9Gb

I hope I didn't forget important specifications.

So I was wondering, is there something wrong with my setup, do I need an upgrade?

Thnx in advance

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Clarification Request
The usual is to change the video card.

But can you tell us why the 32 bit OS with 4GB RAM? This choice limited the machine from using all that it had to offer.

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I never really thought about it because Windows vista 32-bit was on it when I bought it, and when windows 7 came out, I was able to get the 32-bit version with a huge discount through my dad's work.

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Then the top two items would be

1. Get to the 64 bit OS so all the ram and the video can work as best as possible.
2. Upgrade the video card.

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ok, thanks for the help
Then I probably will try 64 bit soon, and see if the upgrade of the video card is still required

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