I tell people in your exact situation that doesnt know what to do about a video card because of the dx10 coming out soon to get a mid end card like the nvidia 7600gt. Now depending where you live and all the nvidia 7600gt is cheaper in the USA than ati would be in the UK normally. Id get either a 7600gt or the x1600xt your talking about.
In the usa you can get good deals on the 7600gt right now.. BFG has the best price right now at newegg but you dont live in the usa so you cannot get it anyway..
The BFG is $144.50 and after a $30 mail in rebate it equals to $114.50.. Shop around online for your country and see if you can find a place that offers a rebate on the x1600xt or even the 7600gt..
Anyway, will all of the money you just saved on a card that will get you through your mid level gaming you can get a good directx10 video card when they come out..
Dont go all out on a x1900 series from ati or dont get a 7800 series or higher from nvidia right now, you are utterly wasting your money unless you are rich enough to get another high end video card when dx10 comes out..