Yeah I dunno what else you can cut out. Seven svchost prolly isn't bad or anything.. I'm not too sure but its probably related to the services. For example I believe I have my wireless service disabled or manual since I have no intention of using wireless. But its extremely minor as far as memory usage. I just dont like wireless anyway and have no card so fvck it why would I have the service running?
My XP loads in 3-4 bar passes! Its set to auto-login and when the desktop hits its only 1 or 2 seconds to be fully loaded. That's with a regular ol' 7200rpm 8mb cache drive.
I have 19 processes running right now, but that includes Firefox, Miranda-ICQ, and of course the task manager. So I boot up with just 16, ~about 120mb used.
Of course, I don't run a software firewall, AV, etc etc.
In your case you may need almost everything being loaded. Unless you game where you really need that RAM, you'd need to have a crapton of programs/windows open to use up your whole 1GB.
edit: I don't know of any less-bloated AIM clients other than Miranda. As I said I have no idea how the AIM support is but it works with ICQ really well. Its probably worth a shot at trying (or try searching this forum or the Miranda forum to see what users have to say about AIM support) it. Maybe GAIM is a little less than regular AIM? Trillian is probably about the same.