It sounds like you're running Windows 98. The easiest way to recover system resources is to upgrade to Windows 2000 Pro or Windows XP (preferrably the former, since it is a good deal faster). These operating systems don't use the system resources concept, and thus they run more smoothly, are more stable, and can utilize much larger amounts of RAM efficiently.
But, failing that, wait for some Win98 guru who specializes in the self-torture of trying to make an outdated, DOS-based OS work in a half-decent manner.
