If this is your PC:
http://www.emachines.com/products/products.html?prod=ET1161-07
then yes, your settings will be horrendously low. Want a cheap upgrade? Get the http://www.newegg.com/Product/Product.aspx?Item=N82E16814102843&cm_re=radeon_4650-_-14-102-843-_-Product or a http://www.newegg.com/Product/Product.aspx?Item=N82E16814130522&cm_re=gt_220-_-14-130-522-_-Product video card. Both cards consume very little power (which will be good for the lowly power supply in your system), but will get you some high settings.
Let's be sure that the pairing of those two doesn't confuse anything. They are very different in overall performance, although it doesn't make that much difference in Oblivion because it was relaesed nearly five years ago, and almost anything from this year is good enough, with the exception of Intel and some nVIDIA IGPs. When nVIDIA dropped the older performance rankings that used the "hundreds", they moved dto the "tens".
An HD 4650 or 4670 was an excellent Mainline card two years ago, and the Geforce GT 240 just about split the difference between those two, although it's never been priced competitively with the Radeons. Essentially, their "40" is now a "650". their "30" is a "550", and their "20" is a "350", so the true comparison to the 220 is the HD 4350 / HD 5450 pair. None of those existed five years ago.
Getting acceptable graphics at a reasonable frame rate from a budget system such as Tig looked up in an old game isn't going to translate to anything particularly useful for Dragon Age or Mass Effect2, however.
http://www.gpureview.com/show_cards.php?card1=617&card2=619
HD 4650 for $37 after rebate: http://www.newegg.com/Product/Product.aspx?Item=N82E16814102843
Bang for the Buck winners lists: http://www.tomshardware.com/reviews/gaming-graphics-radeon-hd-6870-radeon-hd-6850,2782-2.html
Uncompetitive price on a Geforce GT 220 for $50: http://www.newegg.com/Product/Product.aspx?Item=N82E16814130522