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PowerEdge 1600sc convert to desktop optimization

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I have a PowerEdge 1600sc, which I have been trying to convert to an efficient desktop.  However, it is not working out in my favor. I can not clearly watch a video or play a simple flash game without substantial lag and distortion. I installed a 1GB video card, hoping to optimize the video capabilities, but I believe the system is lacking in terms of CPU processing and RAM.  Could someone confirm or deny my thoughts?  
Brief specs:  Two - 2.0Ghz Xeon Processors, 3.0GB RAM, Windows XP 32-Bit.  

Is it possible to upgrade the system, so I can have some graphic capability?  If so, I have read this system can be upgraded to 3.2Ghz 2MB Cache Processor, 533FSB, so I would purchase two of these.  The max RAM is 4.0GB, so I would need to upgrade from 3.0GB to 4.0GB.   Is the 3.2Ghz 2MB Cache Processor the most efficient processor I can upgrade to?  

Thank you.

-Ryan

P.S  If anyone thinks I should stop at the $164.00 I have already put into this system and quit before I spend as much as purchasing a new system, feel free to say so!  



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