New
#11
I have an old Fujitsu laptop that I upgraded from XP to Vista, then to Win7. Along the way, I boosted the RAM from 512MB to 1GB, then to 2GB.
It performs MUCH BETTER under Win7 than it did under Vista -- and the 2GB of RAM cost me less than the initial 512MB upgrade to 1GB!
It has an even lower grade processor than the OP's machine, but it still works well.
It also has an Intel 915 chip, meaning, it won't run Aero at all -- but there are plenty of Win7 Basic themes available through the Customization forum that improve the looks considerably.
IMHO, it was well worth the upgrade.