If you do have the money then it is time to buy a new laptop. Now a days its cheap to buy a new laptop. Especially refurbishment models like from www.tigerdirect.com . Getting to your question of adding RAM, you should get more RAM at least until your ready to move to a new computer. Reading how old your laptop is you should consder getting a new one and transfer all of your files with a free hard drive cloner you can get from download.com and move it you your new laptop.
I'm running a pretty old (6 years) Fujitsu C Series Lifebook with 256 MB of RAM, 40 GB hard disk, and a Pentium 4 1.6 GHz. The performance has slowed to the point where it's pretty annoying, and I have to do restarts usually about once a day after I get a crash. I'm running Windows XP Home SP 3. The hard drive has ample free space left, and I've tried the few tricks I know to optimize performance, but haven't gotten it to do very well. I basically just use Safari and Word, and occasionally I-Tunes and Acrobat -- that's about it. Nothing fancy. Any recommendations on anything I can do to boost performance, or is it just time for a new laptop?
Thanks!
Scott

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