I was running windows xp under p2 333megahertz with 128mb of ram. It was fine for me. I could run media player and one internet windows screen. Its good for simple tasks, but not multiple. Certain games like halflife ran great. The only problem i had was memory. Maybe you should get more memory. I think thats whats holding your system back.
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My Laptop:
Dell 700m
1.8ghz Centrino, 80gigs, Win XP Pro sp2, 1gig PC2700
Intel Graphics Card.
R.I.P. My Dreamcast 2000-2004
