That looks like a perfect XP system.
You could always make it a bit more high end, hot and power hungry but I'm not sure it would be an improvement...
For example a HD4870 1024MB or HD4890 is a bit more period correct and slightly faster than the HD5770 but they also have double the power draw.
The Core 2 Extreme QX6700 is only $25 or so and is slightly faster than the Q6600, but again uses much more power for a 5% real world performance increase... The Q9650 costs $60 for a 15% performance increase.
The best thing I can think of for improving your system is to get a better motherboard like a high end P35 or X38 board and a decent CPU cooler so you can run your Q6600 at ~3.2 GHz with stock voltage, perhaps this is even possible with your current motherboard.
You can also get a Sound Blaster Audigy 2 or Sound Blaster X-Fi if you use the onboard audio.
If you actually want to play current games then get a new computer and use the old one as dedicated XP machine.
New PC: i9 12900K @5GHz all cores @1.2v. MSI PRO Z690-A. 32GB DDR4 3600 CL14. 3070Ti.
Old PC: Dual Xeon X5690@4.6GHz, EVGA SR-2, 48GB DDR3R@2000MHz, Intel X25-M. GTX 980ti.
Older PC: K6-3+ 400@600MHz, PC-Chips M577, 256MB SDRAM, AWE64, Voodoo Banshee.