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If you need to do an operating system upgrade, and add more memory and a larger hard drive, you might be better off waiting until you can get a complete new unit. If you do just fine with only one file open, but when you open additional files the entire thing slows down, hangs, or gives errors indicating you need to close some files before proceeding, perhaps all you really need is some additional memory. 128MB of SDRAM memory can be obtained for around $50 these days. If you've added several software programs after the basic install, you might benefit from a larger drive. A better alternative would probably be to check the stuff you have and see what you can do without and remove it to free up drive space. Adding another 128MB (or more) memory would probably make a noticeable difference in performance, especially if you’re one of those who likes to keep several documents open at the same time or run every imaginable utility that you can load to run in the system tray (that swarm of little icons at the right end of your start bar).