I have 1gig of pc3200 ram and XP runs fantastic. I upgraded my pc after my MB exploded from an AMD xp2800 to an Athlon64. So far its the best computer I've seen and makes the new MAC OSX's I've been forced to use at school look pretty silly.
**Also I tried fixing my cousins HP laptop when she started having issues with it. Her hard drive had developed bad sectors and the HP recovery CD that she had had to use those sectors in order to install. Unlike a normal installation of XP that will delete those sectors from the MBR and not put anything there. I'd think you'd be better off just getting a copy of XPhome and that way you'll at least have the ability to install your OS on another computer should you find a good deal on one you like better.
**Also I tried fixing my cousins HP laptop when she started having issues with it. Her hard drive had developed bad sectors and the HP recovery CD that she had had to use those sectors in order to install. Unlike a normal installation of XP that will delete those sectors from the MBR and not put anything there. I'd think you'd be better off just getting a copy of XPhome and that way you'll at least have the ability to install your OS on another computer should you find a good deal on one you like better.
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