Help Please! Reviving my old PC.

[Mendokusai]

So I'll start with my system specs:

(its a custom build from bare-bone PC and I'm not the original builder)

Model: AOpen XC Cube UX4SG-1394-II

Mobo: UX4SG-1394-II

CPU: Pentium 4 @ 3.00GHz

OS: Windows XP Home SP3

RAM: 521MB DDR

GPU: none, one AGP slot and one PCI slot available (No PCI-E)

HDD: 150GB SATA

PSU: 275w

Here are my questions, any help would be greatly appreciated:

1. I've got a copy of Windows 7 lying around, would this system benefit from upgrading to Windows 7?

2. If so, should I install the 32-bit or 64-bit version of Windows 7? I've heard 32-bit is better for old systems with limited memory.

3. Windows 7 Upgrade Advisor shows that my "Intel® 82865G Graphics Controller" driver is not compatible even though it is already the newest version, what kind of an issue should I expect to encounter?

4. Would it be worth it to upgrade the RAM to 2GB? It'll cost around $50.

5. Would it be worth it to purchase the Zotac GT 610 PCI version for this system? See link below for specs, would be looking at $65 or so.

http://www.zotacusa.com/geforce-gt-610-pci-zt-60604-10l.html

I would like to re-configure it into a media PC for my parents and connect it to their TV. They're not tech-savvy at all so sticking with Windows is my only option. With very limited budget (absolutely nothing over $150), I cannot consider building a new system at all either. Also, I need to make this thing last at least another year, perhaps two.

Thanks in advance!!

[Poohy14]

i have a old AMD single core with 512MB of DDR Ram and a Radeon 9250 and i can run Windows Pro 64 bit just fine even though its just for music and internet so that computer should be more than enough to do things with it even if you upgrade it will still be fine but well that PSU you might have to upgrade