your ram is low. so, that' probably the major problem. you should have 2 gb, at least and you'll see a noticable difference with another 1-2gb (=3-4gb total).
when you get your new computer, make sure you get, at least, 4 gb.
Cheers Kglad, guess I go shopping and look for some more memory, I'll keep the 4 gb in mind when the new windows 7 comes out.
Will 4gb be enough memory for Photoshop CS4.
yes, there's very little benefit (currently) to having more than 4 gb. (and to use more than 4 gb with windows you need a 64-bit version).
i have 12gb and never have i seen my ram utilization go over 30% despite having flash cs3 and flash cs4 open with very large (over 185mb) fla files.
i just read some (flawed but still interesting) testing on tom's hardware: