The onboard video is basic video that is built into the computer's mainboard, also known as the motherboard. It works well enough for general applications, and saves the cost of buying a video card, but has no memory dedicated for its use, so it grabs some that would otherwise be available for Windows to use. Your mainboard has S3 brand video which is currently claiming a quarter of all the available memory. If you reduced this figure from a setting in the BIOS setup (commonly accessed from the startup screen by pressing a key like Del or a function key as shown on the screen), Windows would have a bit more RAM to work with.
As you suspect, having so little RAM available is why Windows will increase the Virtual Memory size. This uses the hard drive as part of the computer's available memory, but because a hard drive works many times slower than RAM, that makes the computer much slower, but it does save it from an otherwise inevitable crash.
More RAM can be fitted. I started out suspecting older RAM might be relatively expensive, and might be hard to justify for an old computer. But it seems to still be economically feasible, like here. 128MB is the minimum recommended to have XP even be able to run properly, and older XP systems often had only just enough to get by. 256MB would be fairly typical amount for a modest system. Over the years applications you'll have on your system like anti-virus or burning software will have grown in size, so they won't be as happy with the tiny memory size as software from years ago was. So that could be a reason you didn't see the slowness and virtual memory notifications in the past, and the computer would certainly go better with, say, another 256MB of memory.
For the quirk you mentioned with AVG still showing up, do you remember if you fully un-installed AVG before changing over to Avast? There are still AVG components loaded in memory, just stopped. AVG provide an application remover here, it may also get rid of the AVG toolbar.
This post has been edited by Platypus: 11 March 2011 - 06:14 AM

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