It depends on how much memory your system is using. More memory doesn't necessarily equal more performance. It depends on how much memory your system is using under normal operation. Win2k and XP use a lot of memory just running, so when you run apps and stuff, if you only have 128 your system will start to use virtual memory, which acts like ram, but is actually being written to your hard drive. Your hard drive is slower than RAM so it will be slow, if you have enough ram, it won't use the virtual memory (well, it does anyways) as much, thereby giving you some more performance.
If you are running win98 you have to get an app that will show you how much ram your using because 98 doesn't have task manager. If you are using NT/2K/XP you have the task manager which will tell you. Find out how much memory your system is using, if it's not using 128 meg, then that's why you don't notice an increase in performance.