Should I upgrade my Power Mac quad core 2.66 or go for a new(er) machine?

I have a 2009 Power Mac, quad core 2.66 ghz, 6GB RAM, OS 10.6.8 and primarily run graphic apps (Adobe Photoshop, InDesign, Illustrator, etc.) for Graphic Design projects and Photography. I've begun to run into sites that want newer versions of Safari and am thinking I should upgrade for security purposes. Firefox won't load (crashes machine), can't upgrade Flash-- wondering if it's time to upgrade OS but when I look at the latest version it won't run on the machine.
I've read where I can purchase a new graphic card and then "hack" the system to run the latest OSX but am wondering, after all is said and done with costs would I just be better off getting a new(er) machine (maybe a powerbook i7)? Would the performance be about the same? I love my Power Mac (the inside is so perfectly designed) and, aside from the browser issues it generally does everything I need. graphic cards that are recommended don't seem to be in production any longer and those that are listed retail for around $350-$500. A RAM boost (extra 16GB for $200) and even a processor upgrade from OWC (http://eshop.macsales.com/shop/turnkey/MacPro/2010_Xeon_Processor) ($500-$600) and conceivably I could run this machine into the ground.
Thank you for any thoughts or insights.

Ah, this is why one should not post late at night with little sleep. Thank you all for the answers and kind responses of help. 
Very good suggestion to reinstall the system and I shall do so. I believe this is the MacPro forum, is it not? Should I still repost? I used everymac.com to determine my system BUT posted the results incorrectly (corrected below and yes, it is a 2006). My apologies. I ran the software that THE HATTER suggested and have the results below. I'm not opposed to spending money to either upgrade or purchase a new(er) machine-- simply looking to spend the money necessary wisely for the best possible return. Thank you again for the help.
ETRECHECK:
(I'm only posting part of this-- I don't know if there's a posting limit or protocol on posting). I am running CS5
Hardware Information: ℹ️
  Mac Pro (Verified)
  Mac Pro - model: MacPro1,1
  2 2.66 GHz Dual-Core Intel Xeon CPU: 4-core
  6 GB RAM
  DIMM Riser A/DIMM 1
  2 GB DDR2 FB-DIMM 667 MHz ok
  DIMM Riser A/DIMM 2
  2 GB DDR2 FB-DIMM 667 MHz ok
  DIMM Riser B/DIMM 1
  512 MB DDR2 FB-DIMM 667 MHz ok
  DIMM Riser B/DIMM 2
  512 MB DDR2 FB-DIMM 667 MHz ok
  DIMM Riser A/DIMM 3
  512 MB DDR2 FB-DIMM 667 MHz ok
  DIMM Riser A/DIMM 4
  512 MB DDR2 FB-DIMM 667 MHz ok
  DIMM Riser B/DIMM 3
  empty empty empty empty
  DIMM Riser B/DIMM 4
  empty empty empty empty
  Bluetooth: Old - Handoff/Airdrop2 not supported
Video Information: ℹ️
  ATY,RadeonX1900 - VRAM: 512 MB
  VX2336 SERIES 1920 x 1080 @ 60 Hz
  hp f1703 1280 x 960 @ 75 Hz
System Software: ℹ️
  Mac OS X 10.6.8 (10K549) - Uptime: 89 days 2:15:37
Disk Information: ℹ️
  WDC WD2500AAJS-41RYA0 disk0 : (232.89 GB)
  - (disk0s1) <not mounted> : 210 MB
  Macintosh HD (disk0s2) / : 249.72 GB (18.35 GB free)
  Hitachi HDT725050VLA360 disk2 : (465.76 GB)
  - (disk2s1) <not mounted> : 210 MB
  500GB (disk2s2) /Volumes/500GB : 499.76 GB (92.11 GB free)
  WDC WD1002FAEX-00Z3A0 disk1 : (931.51 GB)
  - (disk1s1) <not mounted> : 210 MB
  1TB Drive (disk1s2) /Volumes/1TB Drive : 999.86 GB (760.73 GB free)

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