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If you could afford it, upgrade your mobo to soemthing that can support PC3200 memory DIMMs, that can ensure faster memory transfer when running DVDs, making home movies, etc. I would personally go with 512 mb if i were running thouse kind of applications on a Windows XP environment.
If you were gaming the hell out of this computer, i would recommend 1gb. I've gone with 2gb of memory once in the past and it really makes no difference, a frational 1/16th of a second difference when loading files into ram. Unless you are running multiple programs at once, for example, sound editing software, games, chat programs, music, video programs all similtaneously, then i would go with more than 1 gb.
Also, A good mobo to go with just to upgrade ram, processor, ad have S-ATA prividges, i would go with the ASUS A7N8X-E Deluxe. Its not the greatest mobo around anymore, but it does the job just fine.
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