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Dep7z
You're Pc is struggling, mainly due to the size of the HDD, a RAM upgrade will help, but not much if your HDD is too small to cope, as XP needs a lot of room to install, and work correctly,
I'd recommend getting a minimum of a 40GB HDD before having XP on there, you could use this as a master drive and your 10 GB HDD as a slave.
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