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Your CPU's actually not that bad. It may be acting as a bottleneck for some games considerring the rest of your setup, but for most it should be fine as most games barely go over 2 cores and even the ones that do barlely use more than 3. You should be able to play most games at higher settings than the HD consoles with that 1GB graphics card. However, I understand you want a faster CPU that'll keep your system going for a good few years.

So, the CPU is a decent CPU for the price. If possible though, I'd go for a Q9xxx series quad core. These tend to have more level2 cache available to them. The Q9400 should only be a little extra but you get 6 Mb Lvl 2 cache as opposed to 4. Obviously, the more you spend, the better the CPU.