I'd advise always keeping a desktop around. It's just soo much easier and you don't have to worry about batteries. If your lifestyle has you moving around alot though, I'd obviously recommend a laptop (I'm getting one in 1.5 yrs when I'm going to university.)
You could spend as little as $500 upgrading your old comp to a powerhouse. I've got an article in PCGamer where they simply get a new mobo, ram, processor and graphics card and bring its performance up over 300% (!)
I'd go for the upgrade cuz its cheaper, parts are easier to get, and you don't need to go to tech support each time something messes up inside.
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