If increasing your pagefile helped improve performance, a jump from 256Mb to 512mb of system memory would more than likely help things run much more smoothly. The problem is you end up in a situation where you have to ask yourself, How much do I want to spend to upgrade this computer?
I don't think an extra 256mb of ram would be too much, but I would definitely be careful not to go too much further unless you are doing it for sentimental or monetary reasons.
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