I upgraded the hard drive and memory (to 100MB and 2GB, respectively) and the performance specs bumped up as follows:
- Memory: 5.2
- Graphics: 3.0
- Hard disk: 5.0
The disk I installed is a 100GB/7200RPM Seagate Momentus 7200.1 ST910021AS (OEM). The RAM was 2 x 1GB Kensington KTH-ZD8000A/1G. Less than $200 from Newegg.
May seem like an excessive expense for a $500 laptop, but the perceptible improvements in performance have been worth it, IMO.