Which should I upgrade first - RAM or CPU?

To answer your question, RAM is probably the first thing to upgrade. Remember, you can probably overclock your CPU to 2.0GHz or so. I have a friend who has a much older AMD system than yours and it's overclocked - he says it makes a difference. So, buy RAM, you can't just make more of that RAM space yourself. (OK, swap space, but that is a different story...)

"If your computer is rather old, CPU upgrade might be possible, but there's the chance that other components in your computer will not be able to keep up with the performance of the new CPU.

You can get a ""cheap"" Dell for $400. If you look to upgrade, you might find yourself needing a new motherboard, a new CPU, new RAM, a new GPU and possibly even a new PSU to power everything.

I rather suggest investing in a new computer."