Ah to add something on - yes RAM and CPU power might increase performance slightly, but they increase things that aren't graphics-card related. Usually the amount of objects displayed, etc.
If you have 768 MB of RAM and at least 1.5 Ghz processor, you shouldn't experience any problems what so ever - however, you might have spyware or programs that are running in the background.
I keep my system processes to a minumum... disabling services and things that aren't needed when booting up - this will dramatically increase the overall performance of you computer. Look into it. 1
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