Fast PC yet still problems with memory optimisation on CS3

I have a Dell 690 with eight 3GHZ processors and 3 Gig of RAM.
I'm editing a half-hour documentary with lots of video audio and still files.
Often when I create a new title caption, I receive a warning that memory is low. And now it's freezing up all the time when I'm animating stills (particularly when I apply a heavy effect like Gaussian Blur).
Do I need more RAM? Or is Premiere CS3 just as lacking as the previous versions, when it comes to editing big projects?
ed

Two suggestions:
1) make sure that under the Preferences options, there's a setting somewhere that says something to the effect of optimize for Performance vs Memory. (By default, it's set to performance). Switch that to memory.
2) Consider using Vista 64. That will allow any 32 bit process to access up to 4 gigs of virtual address space instead of 3 gigs. This should help considerably... plus, you could throw more memory into the machine which would help if you're running multiple concurrent applications (case in point, if you're attempting to use Dynamic Link between AE & PPro).

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