The processor is one of AMD's low end, single core processor and as such, it's not going to perform very well.. Likewise, your new Win 7 64 bit operating system allows you to use lots more RAM than just 2 GB.. Most of the newer Win 7 basic machine have 3 or 4 GB of RAM installed... In addition, you don't mention what type of graphics card you have installed, but because of the budget processor, I'll guess you have an integrated graphics card with little RAM allowed for graphics..It's no wonder that streaming video is choppy, even with a good bandwidth speed.
So, since you're asking for recommendations, I'll suggest you improve all three of the items I've mentioned above. (Maybe a new computer if your main intent is to watch Hulu on it.) If you can't afford a new computer, I'd start with installing an upgraded graphics card with at least 512 MB of internal RAM. After that, if you're not satisfied with the result, throw about double the amount of RAM in the computer, IF it will take more. (The motherboard specs from HP indicate "Two DDR2 DIMM (240-pin) sockets " and "Supports 2GB DDR2 DIMMs" up to 4 GB on 32bit computers, but it's not clear whether it will support more on a 64 bit system.) And last, if you still want more power, the motherboard does support a processor upgrade to the Phenom II Quad Core.
Hope this helps.
Grif
How do I know if adding more RAM will fix my computer from bogging down? Or do I need more processor speed?
I have a Compaq CQ5300Y PC, AMD Sempron LE 1300, Win 7 home premium 64 bit, 2G system memory, 320G Hard drive.
That said, I have upgraded my Comcast Internet bandwidth, however, I do not notice any real increase in my internet experience. My main concern is when I watch programs on Hulu, and streaming Netflix etc..My processor maxes out at 100% most of the time while doing this and it can be choppy. Do I need more RAM, a faster processor or is there a way I can trouble shoot to figure out what's draining my system? It also seems to take forever to open up, say, MS word 2007 also. I use MS security essentials, and once a week run Malwarebytes (free edition) just for good measure, no viruses have ever been detected (knock wood) so far. And Super Anti Spyware (free edtion) once a week also, again no problems have ever been found. Sorry this is so long...

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