i think now adays, you can put up to 8 gigs of ram on a pc if it supports it...usually you can double what the factory supplied you with...2 gigs of ram works for me...now for you, it depends on what you do with the machine...if you are a gamer 2+ gigs, if you just want a fast pc 2 gigs is ok.
your only limited by how much the motherboard can handle...most cases thats four gigs
if you don't play games...1 gig is enough...if you do play, you'll need at least two gigs anymore than that is really over kill unless your doing high end graphic design...
(you can get away using 2gigs for gaming as long as you have a decent video card to back that up)
With the price of RDRAM, you should stick with the 1GB that you currently have. Of course, if you're set on upgrading you can purchase the memory here.
If it's windows xp 1gb is good enough. I use run my windows xp pro with 512mb ram with no problem even when playing games and doing video editing.
I would just keep what you have right now, when I upgraded to 1gb, I couldn't tell any difference. If it improved performance it was so small that it's unnoticeable.