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Need advice on hardware upgrade

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Hi
I have an old PC with Intel Core 2 DUO E4500 @ 2.20 GHz Processor, 1 GB RAM, 160 GB Hard disk running on Windows 7 Ultimate version.
My PC gets hanged during my work quite often. Even browsing the PC is nearly impossible at times. I need advice as to what is the best possible way to upgrade the PC

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