Once you start running Oracle you will need more memory. You can do that with virtual memory (swap space), that that will slow down the system terribly! So yes, upgrade to 64-bit Windows and if you can upgrade memory to 8GB. You will be a much more happy camper with that setup. In this case, more memory and 64-bit OS will serve you better than a faster CPU. At least you have two cores - which is equivalent to 2 CPU's. I have a similar setup with my old Dell D630, which has 4GB of RAM, but then I am running 64-bit enterprise Linux on it which works well with 4GB of RAM.
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jwenting commented: irrelevant -3
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