If by slow you mean starting up the programs, then it could be the hard drive, or your system bloated by years of usage.
2GB maybe a bit short. If your system is hampered by processed and background applications, it will feel sluggish. The processor should cope with apps. I have a SU2300 which does the job nicely, but I also have 3 gigs, and a SSD, which makes the machine really responsive.
1) do a defrag on the hard drive. See if it improves.
2) do a clean install of XP to get rid of the bloat and see if it improves.
3) If you do not have an antivirus and spyware detector, install one (Microsoft Security Essential if it is available for XP - not sure-, or Avast! + malwarebytes, something like that).
4) run a hard disk performance check and see if it's really bad, or acceptable. HD are the slowest components in a PC, especially cheap laptops.
5) can scout for a cheap 2 gig stick to use to replace one of your 1 gig slot to bring the memory to 3 gigs (max a 32 bit OS can manage). Your system maybe crippled by background apps taking memory, and forcing page faults and thrashing the HD. However 2 gigs should be enough for light use. My NC10 with Win XP was fine with 2 gigs.