I still prefer to sit on the nVidia side of the fence when it comes to graphics cards, but then again, I've not tried any of the new ATI cards...
If you can get the card you mentioned for under £140, I'd say go for it......although if you're getting it for pure gaming, I'd say fork out a bit more for the 9800-series. You can pick up a 128Mb 9800SE these days for £160-170, although not sure how they compare to the 9600XT (since the XT is the top-spec, with the 9800XT costing £340 and upwards)