Adding RAM will increase performance up front. I would recommend two 1 Gig RAM sticks instead of four 512. Just my opinion on this. But in reality, more than one Gig for general "stuff" is over-kill. Get two 1 Gig sticks if you can afford it.
I used to have a 64 Meg graphics card and for grins I upgraded to a 256 Meg card. I've seen no difference. It might make a difference in hard core graphics intensive games, but just regular surfing and "stuff" I don't see a difference.
For photo storage you might consider an external USB-2 Hard Drive.
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Because money is short, I acquired a Dell E521 AMD Semperon 3400+ (1.8 GHz) mini tower, 1x512MB DDR2 533MHz, 80 GB drive, on board graphics and sound, Windows Vista Premium.
I am on Internet fairly continuously and like to have an accounting program and MS Office 2003 open as I work. For SOHO business, this machine works OK but I have large photo collection and use Adobe Photoshop Elements for editing.
Obviously, more memory and a good graphics card would be helpful. I'm thinking of adding 512MB memory first, then a graphics card, then bump memory to 2 GB by filling memory slots with 2 additional 512MB modules. I'll do this over a few months.
Questions for people smarter than me:
Have I prioritized additions correctly? What choices in graphics cards should I consider? Any other suggestions?