Andrew,
I would try formatting and reloading a fresh copy of XP first because that laptop is complete over kill just to run a toucam.
2gb ram is better but 1 gig is ample for the apps neeeded to run a toucam.
I have a laptop pentium M 2 gig with 1 gig ram and I can run around 5-10 programs at the same time.
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