Raion to be honest with you mate, I would not like to run XP (or ME for that matter) below 256Mb of RAM. Hey, 512Mb is about the entry level for XP, and I generally build 1024 as standard.

I must admit that I am not a massive XP fan, I actually prefer Win 2000.................and that would run really sweet on your current box. When you get a new one, think about dual booting Win 2000 and a Linux distro on that puppy?

You might also look for a bit more memory, whilst it is still reasonably priced?