I thought the minimum system requirement for Windows XP was 64Mb or RAM.
Anyway, 256 megs is good enough for alot of things, but for high-end gaming, multitasking and the like, you need at least 512Mb of RAM to get good performance.
NZXT Guardian Case with Thermaltake PurePower 420w
FIC AU13 motherboard
AMD Athlon XP 2600+ 333FSB (Barton) with Thermaltake Silent Boost HSF
WDC 80Gb 8Mb cache 7200rpm
512Mb Kingston Dual-channel PC3200
MCP-T SoundStorm audio (integrated)
ATi Radeon 9800 Pro (it owned, until x800 and 6800)
Logitech Z-680 5.1 speaker system (integrated Dolby Digital 5.1, DTS, Pro Logic II decoding)
Logitech Cordless Elite Duo keyboard & mouse
Saitek Cyborg Evo joystick
Windows XP Pro SP1 (dont. install. SP2.)