People keep saying to wait for the next gen cards, but if ATI's R420 rollout is anything like the R300-series one, the first card to come out will be an uber-high-end piece of equipment priced way above where the current cards are.
If you're looking at a 9800XT right now, I'd say to wait, but I don't think 9800Pro prices are going to drop much (if any) until the "mainstream" R400 cards are widely available (IMHO).
His video card is terrible compared to the rest of his system. If he's looking for an upgrade that will massively increase performance, this is it. If $220 is too much to spend, perhaps a GeForceFX5900 (~$180) would be more appropriate, as it's also a big step up from his current equipment.