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Actually 31 processes is a bit high.
Windows XP, with NOTHING else running, is 16-17 processes.
The problem, from what I can tell is that you only have 128 MB of RAM. So you are right that you need more memory.
And with 31 processes, you are no doubt into virtual memory(pagefile); which will give you a big hit on performance.
Look on Task Manager, on the bottom for Commit Charge, if that number is higher than 128K, you are into virtual memory.
For your virus program, it should have a setting to disable the auto protect.
If you want to see what programs are loading on boot, open the System Configuration Utility, and look under the Startup tab.
To open it type msconfig from the run prompt and hit OK.
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