The MHz you list for the processor are hopefully way off? It sounds as if they stuck an old Thunderbird processor (think 1999 or so) in a new computer, and that seems odd. Click Start, then 'RUN' and type in DXdiag and click 'OK'. Don't panic if the screen goes blank for a few seconds. You will get more information about your system than you'll hopefully ever need, but on the first page, you'll see what processor is in there, along with the relevant BIOS and driver info etc.
Your problem sounds like insufficient RAM to me, which obviously shouldn't be the case with 1 Gb. Download and run a RAM test.
You shouldn't need Virtual Memory, if anything turn it way down, so your system won't spend time loading something from your hard drive, when you have ample RAM for EQ.
Defragment hard drive (just on principle).
Try running EQ without any other programs running.
Try running EQ on her machine but on your Internet-connection.
Good luck!