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I would recommend in order of preference CPU then RAM.
I disagree with this statement.
The highest CPU upgrade he could do is a 1.1(ish)GhZ P3...to get a P4, he'd have to buy a new MB, and new RAM...at that point he's upgrading the whole thing.
You'll see a HUGE increase in bumping up to 1GB of ram (or more), you won't see much in just increasing your processor speed a couple hundred Mhz
I would also suggest upgrading to an AGP video card IF YOU HAVE THE SLOT. you'll see MUCH better performance over a PCI card.