Best strategy for using external drive to speed up painfully slow mac mini

I have Intel core duo, and LaCie external drive. Many programmes are almost unusably slow. Like Adobe Photoshop, Garageband, Logic Express, SecondLife etc... (would have been nice if apple had told me the 'improved spec' would mean so many programmes would no longer work!)
I am looking for the best way to utilise the external drive. I have now set up to boot from the LaCie, but it is no better. Id like to know whats best to do with the two drives. Would one be best kept as clear as possible? And should that be the bootup drive? Originally, the idea was to increase storage and backup. Now it is anything at all, that will make this computer faster. My old G4 PowerMac is actually faster and more reliable!
powerMac G4   Mac OS X (10.3.9)  
powerMac G4   Mac OS X (10.3.9)  
powerMac G4   Mac OS X (10.4.9)  
powerMac G4   Mac OS X (10.3.9)  
powerMac G4   Mac OS X (10.3.9)  
powerMac G4   Mac OS X (10.4.9)  

There is no way to improve on the graphics card in your mini - it's built into the logic board and can't be bypassed. However, while that may be a disappointment, it has to be said that by and large the graphics system in the mini is actually very capable, and is probably not the cause of the problem.
What IS the primary issue I suspect is the 512Mb RAM, which on a Core Solo running applications such as Photoshop is so woefully inadequate that it would be a surprise if your old G4 wasn't somewhat faster!
The problem is that Photoshop (the version you have) is not Intel-native, so while it runs, it requires Rosetta. Thus you have a RAM-hungry operating system, a RAM hungry application and a RAM-hungry translation package, all running at the same time. To add to that, since the software is not Intel-native, it has to be translated on-the-fly so considerable CPU time is needed to devote to that process in addition to all the other things the system needs to do in order to run.
Thus your external drive would not help much when used as a boot drive because even though it is likely to be somewhat faster than the internal, the limited RAM of the system will be forcing so many 'paging' actions (writing and reading memory blocks to the hard drive) that any speed gains will be rather heavily masked.
Most of the performance problems you experience can be resolved by upgrading RAM to 2Gb, simply because that will allow MacOS, Rosetta and your software a lot more room to breathe and significantly reduce the paging activity of the system such that then booting from the external will show notable improvements in responsiveness.
Alternatively, you may find that there are Intel-native alternatives to your software which may be available at reasonable cost and provide the features you need. Good examples are such things as GraphicConverter, which is shareware and does much of what Photoshop can do, and NeoOffice, which is open source and free, which is a good alternative to MS Office. These would run without Rosetta and provide you with much improved performance as a consequence.

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