it seems you have an onboard graphics card. what i would do is check if it's AGP or PCI slot. (crack open the case)
after that, you'd just go pick up a $40 dollar card and it should work fine. assuming you don't do any major gaming.
mushroom's right on about the ram. however, again with the gaming, i recommend just picking up another 512 because 1gb is enough for basic needs.
compare your slots to this image:
usually if you have an AGP slot, you'd only have 1 or 2. it will be outnumbered by PCI slots.
both of these components are plug and play. video card will just require drivers.






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