+1 on keeping XP and upgrading your ram.
asmodeus, chances are I have some ram that will work in it. On the bottom of the laptop there is an access panel. Can you check what type it is (Will probably say PC66 or PC100). Does it have 2x128mb or just 1x256mb stick? (SODIMM is the name of the ram sticks)
Let me know, and I can snail mail it to you as a late xmas gift
You might want to consider optimizing XP via disabling services you don't use. Caution must be used when doing this, but there is some good guides:
http://www.beemerworld.com/tips/servicesxp.htm