I think u should go for C2Q as new games will recommand it.
Take for eg GTA IV as shown in its requiremnts it recommands Intel C2Q....so for future gaming c2q is must...GTA- IV is only the starting for future QuadCore Gaming.
As u have 40k budget use it and go for the best rig as possible and if needed OC it
I think this is not a ideal time for upgrading...as LGA775 socket & C2D are going down....& new socket means LGA1366 & core i7-i5 are coming...so upgrading after 3/4 months will be better & will be more future proof ...also windows 7 is coming..I think this time it will rock...will not fail like vista
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