You'd see a more worthwhile upgrade going to an E8400 or a quad than you will going to a GTX 260 or something similar. The 8800GTS can still run all your games quite well, imo.
I have a 22" Monitor. It seems to run must games pretty well. I think I have the G80. I bought this when they first came out. I would like play more games like crysis and others. What I have now is great for wow, but not the greatest on some of the new dx10 games.
You could probably do an E8400 and a 9800GT for <$300. Not sure if this would be a better overall upgrade than moving to a GTX 260, might depend on whether or not you plan to overclock. An E8400 @ 4GHz + a 9800GT is a pretty sweet gaming rig for 1680x1050.
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Which GTS do you own...aren't there two different cores? G80 and G92?