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For $800 you could get 2 GB and at the same time buy a new CPU and new MB, and even a enw vid card. Not sure why you'd hang on to old tech like that.
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Several reasons:
1. It still works.
2. Games still run fine on it after a much cheaper upgrade to the PSU and GPU.
3. I see no reason to throw $800 for a low-end system with the bare essentials when I can keep saving and build a top of the line system later on.