The maximum amount of RAM a computer can use is determined by the motherboard in the pc:
1. Number of slots the board has
2. How much RAM each slot is capable of utilizing
3. The maximum amount your motherboard can utilize
If you know the exact model of your computer or your motherboard you can find this information online, or you can consult the owner's manual.
Increasing your RAM to the max amount the system can use is the easiest and least expensive way to increase the performance of your computer.
Considering the processor speed is only 700mhz, maxing the RAM will only help to an extent. More recent pc’s have double or triple the processing speed, so just keep in mind, that the cpu and motherboard will ultimately be your limiting factors if the RAM increase doesn't help enough. Both of these are more expensive upgrades, and are both often more difficult the deal with concerning compatibility. Usually it is more budget conscious to replace the pc at that point, especially if the technology is more than a few years old.
Another thing that may greatly increase performance is giving the operating system a good tune up (defrag, clean out the temp files, etc), or completely reinstall the OS. Windows has a horrible tendency to start running more and more sluggish as time goes on (it's coined 'WinRot'), and this won’t cost a penny if you still have the installation disk and key, and have a knowledgeable friend or co-worker.



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