Necessary amount of RAM

I would recommend you to get an SSD instead of the extra RAM
Absolutely. That's the way to go. Get a Crucial M4 for a hundred bucks and your system will really fly.
Absolutely! I just got one and the machine works much faster. Hopefully the all-in-one-er will accept a standard size 2.5" drive.
I noticed the M4s price has dropped a bit today.
 

My Computer My Computer

At a glance

Windows 7 Ultimate X64 SP1Intel i5-2550K, Differing ~4.4-4.8GHz No buil...16GB G.Skill Sniper 1866MHz @ 2133MHz 2x8GBASUS GTX650TIB-DC2OC-2GD5, (650TI Boost)
Computer type
PC/Desktop
Computer Manufacturer/Model Number
Home Built Desktop By DataTech
OS
Windows 7 Ultimate X64 SP1
CPU
Intel i5-2550K, Differing ~4.4-4.8GHz No built in GPU
Motherboard
ASUS P8Z68-V PRO/GEN3
Memory
16GB G.Skill Sniper 1866MHz @ 2133MHz 2x8GB
Graphics Card(s)
ASUS GTX650TIB-DC2OC-2GD5, (650TI Boost)
Sound Card
Onboard Realtek 5-1
Monitor(s) Displays
Samsung P2570HD
Screen Resolution
1920x1080
Hard Drives
Samsung 840 Pro 256GB SSD for OS, 500GB Seagate Constellation (Enterprise drive) for Data
PSU
Corsair HX650W
Case
Inwin Dragon Rider
Cooling
Hyper 212 EVO w/two Noctua fans, push-pull, @1300 RPM
Keyboard
E-Z Eyes, bright yellow keys with large characters
Mouse
steelseries SENSEI Laser Pro Gaming
Internet Speed
48-51Mbs Mbs down, 11 Mbs up Xfinity Cable
Antivirus
Norton Internet Security 2013
Browser
IE 10, Opera, Pale Moon if needed
Other Info
4 case fans, LG BluRay-RE, ASUS DVD-RW, Mr. Fusion power supply, 1.21 gigawatts.
It depends on how much programs you have open at a time and how much each Application uses. For example if I were running Photoshop, and 40 tabs on my Web Browser 1GB will not be enough.
 

My Computer My Computer

At a glance

Windows 7 Ultimate SP1 - 64 BitIntel Core i5 2500k2x4GB DDR3 1333HzAti Radeon 6770
Computer type
PC/Desktop
Computer Manufacturer/Model Number
Novatech iRush Pro
OS
Windows 7 Ultimate SP1 - 64 Bit
CPU
Intel Core i5 2500k
Motherboard
Foxconn H67M-S/H67M-V/H67
Memory
2x4GB DDR3 1333Hz
Graphics Card(s)
Ati Radeon 6770
Sound Card
None
Monitor(s) Displays
Samsung S22B150
Screen Resolution
1920x1080
Hard Drives
2x500GB
PSU
500W
Cooling
Fan
Keyboard
HP KU0316
Mouse
Wireless Logitech M185
Internet Speed
20MB/s
Antivirus
Avast Free
Browser
Google Chrome
Other Info
Logitech M185 Mouse
KU-M316 Keyboard
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