In terms of raw performance the X1650 XT is a very worthy competitor to the 7600 GT and given its better texture filtering, its ability to process both HDR and AA simultaneously, and it's better connectivity options, I'd say it's the better choice of the two.
However, unless you're totally desperate I'd hold out for a couple of months until mid-range DX10 hardware is released. At the very least this will cause the price of these cards to drop.
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