budget?
to upgrade to 2gb ram, just buy the cheapest 1gb chip you can find on newegg or somewhere and put it in. Although IIRC, the xps likely comes with dual channel, which means 2x512, so you'd have to replace both chips to get 2gb (since laptops only have 2 ram slots.)
cheapest ddr2 you can find would work fine (here's some). what size of hard drive do you want to upgrade to, you can get a 80gb 7200rpm hitachi that is pretty fast or if you want size you can go up to a 120gb 5400 or the recently released 160gb but its on the extremely expensive side now.
For the hard drive, 7200 is a must, size would be a minimum of 60-80 GB. The RAM, I would like good performance, I don't want value RAM if I will notice a hit in framerates.
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