Configuration to run PS and Indesign CS4 Effectively

Hello Adobe Users,
I need some feedback on a configuration that will allow for effective use of Adobe Photoshop CS4 and IndesignCS4 at the same time. The users currently uses a Dell Optiplex 745 PC with 3 Gig of Ram, with a ATI Radeo X1300 series graphics card that has 256M on it and support OpenGL2.0 and Shader Model 3.0 in at least some capacity.
When creating documents in InDesign and using Photoshop for editing, the system is dog slow.
This is a 2 GHz + Pentium processor and no other applications are running.
I can bump her to 4 Gb but don't see that making a huge difference.
I'm looking for suggestions? Replace with workstation level machine with XP64 and 16Gb of Memory?
Can you give me some examples of an effective Windows User platform that you are working with that works well with the two products running together?
Thanks in advance!
Ken

I use a Dell T5400 workstation
Intel 5400 chipset
Intel Xeon E5410 (2.33GHZ, 1333Mhz, 2x6MB, Quad Core)
8GB DDR2 667 Quad Channel Memory
512MB PCIe x16 nVidia Quadro FX 3700 ((MRGA15),
160GB (7,200 rpm) SATA 3.0Gb/s Hard Drive with NCQ
Two 500GB (7,200 rpm) SATA 3.0Gb/s Hard Drive with NCQ
16X DVD+/-RW
DC power supply 875 Watt
Vista Business (64-bit)
Don't even think about XP64!

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