Are you running 32-bit or 64-bit? 2GB of RAM is the lowest recommended for 64-bit, 3GB would be better and 4GB is pretty much ideal.
Also is the harddrive 5400RPM or 7200? And how much cache does it have?
Understanding Harddrive Performance
Also try minimizing what programs load at startup. Things like Adobe try to slip in preloaders that waste time and resources.
BTW you may have trouble down-grading to XP. Just like drivers may be hard to find when upgrading, drivers to downgrade may be even harder to find. And depending on the size and formatting of your harddrive it may not be able to reference it.