I have a stock P4 2.8GHz with 1.5GB RAM on XP Pro SP2. I upgraded from a 9600XT 128MB (which is slower than your 9800) to a 7600Gt w 256MB. I only run 512 textures. With certain terrains, under certain view conditions, I got about a doubling of fps in AH. Under other view conditions I got no improvement. Stuttering and brief freezes have actually become slightly worse with the new card (from essentially none to a bit). My upgrade was only marginally useful (but it was cheap at about $100).
I'm not sure this is relevant information considering your need for 1024 textures, but I thought I'd mention it.