+1 to this advice.
However, I would question whether you are doing those maintainence checks correctly.
XP will start to slow down, yes - but remember that everything to it can be undone - i.e. it shouldnt get slower if you are carrying out regular proper maintainence.
I run XP on my development machine and also on this laptop that Im typing on atm; periodically, I go in and alter the startup programs and services if I notice any slow down - removing the ones I dont want and/or need.
Also, cleaning the registry is important too; and with all these things done correctly Im not seeing any slow down in XP after years and years.
Good point about 32bit though - you arent getting the full use out of your RAM (though I dont think its as low as the 3.2Gb that Milky says - Im nearly sure its 3.65Gb max for Win XP 32bit.)
Anyways, I think the hardware sounds good, but
I would check whats using up your additional memory as I think 3.65 is possible.
And the video card could be better - you can pick up a nice nVidia 9800GT 1Gb on eBay (new) for a good price nowadays.
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