Windows XP Hardware Requirement

The requirements are similar to those of Windows 2000. So a good general guideline is to take a look at the operating system your machines are presently running and how well the machines are performing. For example, if your Windows 98 machines are already running sluggish, you shouldn’t even think about loading Windows XP onto them. However, if your workstations run Windows 2000 Professional smoothly, they probably won’t have trouble running Windows These are the minimum requirements for basic functionality.
The minimum hardware requirements for Windows XP Home Edition are:
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Pentium 233-megahertz (MHz) processor or faster (300 MHz is recommended)
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At least 64 megabytes (MB) of RAM (128 MB is recommended)
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At least 1.5 gigabytes (GB) of available space on the hard disk
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CD-ROM or DVD-ROM drive
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Keyboard and a Microsoft Mouse or some other compatible pointing device
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Microsoft advises that you’ll need a video adapter and monitor capable of displaying 800 x 600 or higher video resolution. The truth is, at 800 x 600 resolution, users may eventually have trouble with the Start menu. As you load programs onto the machine, the Programs section of the Start menu gets larger. When the menu gets too large to fit on the desktop, it starts leaving out menu choices, and it may eventually become impossible for a user to access some applications via the Start menu. I recommend running video at a minimum of 1024 x 768 resolution.
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Sound card
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Speakers or headphones

For more information about system requirements for Windows XP Home Edition, visit :-http://www.microsoft.com/windowsxp/home/evaluation/sysreqs.mspx

The minimum hardware requirements for Windows XP Professional are:
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Pentium 233-megahertz (MHz) processor or faster (300 MHz is recommended)
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At least 64 megabytes (MB) of RAM (128 MB is recommended)
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At least 1.5 gigabytes (GB) of available space on the hard disk
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CD-ROM or DVD-ROM drive
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Keyboard and a Microsoft Mouse or some other compatible pointing device
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Video adapter and monitor with Super VGA (800 x 600) or higher resolution .I have discussed about it in detail earlier.
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Sound card
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Speakers or headphones

For more information about system requirements for Windows XP Professional, visit :-http://www.microsoft.com/windowsxp/pro/evaluation/sysreqs.asp

Make sure you have at least 256 MB of RAM, any less and your machine will lag due to use of the hard drive as memory. 512MB is preferred.

Maximum RAM Support For Windows XP:-
Windows XP Professional can handle up to 4GB of RAM and according to Microsoft, the same is true for XP Home.Most users run quite well with 1GB of RAM.
But all depends upon the motherboard's supporting capabilities.

Before You Increase RAM keep Two Things In Mind:-
1]Read the motherboard manual just to know how much RAM your motherboard can supprt.
2]Make sure that that all of your RAM is the same type from the same manufacturer.

More Information Here:-
Microsoft Windows Hardware Compatibility List
Microsoft Support Policy on Hardware Not On Windows HCL