Use it as a toilet while looking for a new computer.
What's your budget?
Alright, first of all, it's running off of a MicroATX mobo, which sort of cuts down on your upgrade potentional. Plus, the pre-installed motherboard is a pile of shit...I wouldn't even use it for beer coaster. I'd suggest getting a brand new ATX form factor motherboard with an AM3+ socket on it. You can get some great cheap ones for around $50-100.
The case, (while still obviously not having the best airflow), should definitely be kept for any upgrades. It's an ATX as well, so you have plenty of room for upgrades.
That CPU isn't too slow, but it's not really too fast either. Pick up an FX series if you can.
That GPU DEFINITELY needs an upgrade. Pick up either a 7000 series Radeon or a 600 Series GTX.