In the land of editing the processor is king and the hard drive his queen.
My suggestion, if you can afford it, is to get up to date with the processor / mb. Get a P4 / 64bit amd and partner that with your newish 160 drive and things should whizz along better. If you can get another drive, use one for a system drive and one for storage. Bin the 10gig as this will be slowing your system, or put in a usb case to make a good portable storage soloution.
Not sure what your budget is and I know it aint a perfect world but I found my system speeded up when I changed my system drive to a 37.5 gig raptor. I really think this makes a big difference. My next system may have a fast raid of 2 raptors.
Ram wise, well depends who you talk too. If you run lots of apps at the same time then go for a gig, but I think 512 is often enough. Those nice people who make vegas said 512 was plenty.
Considor another monitor too, it really makes editing nicer.
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