I would just add an SSD and some ram. Some years back I took a crappy netbook that was running XP and gave it a clean install of Win7 and it was a lot better.
Don't even think you can add ram to these. Though suppose I could check. If I can bring it up to 4 then it would run win7 half decently. CPU would be the bottleneck instead of the HDD as it would not be swapping like insanity. SSD would be ideal too but I don't really want to spend much money on it.
