since it's XP with 1GB 2GB would probably be ideal especially if you're going to be multi tasking. The HDD looks good but I'd reccomend an external HDD for back up of files as they can be about $100 and be around 250GB for that price ( i built myself a 250GB for $80). Yaeh an upgrade in ram would probably be all you need. As for the warranty just get it i meen if something goes wrong, upgrade it.
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