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That PC doesn't even has an AGP port. It's an old socket 478 system with normal DDR RAM. You can't get much for it that can increase performance other than, like you said, RAM. As long as it's the same speed than the other stick, it won't slow it down.

But I strongly recommend building a new one. And the current RAM is not defective, it's less than 256 because it's pooling certain amount for Video RAM.