Get more Ram or new computer?

I have an iMac G5 with 1 GB (I think) of RAM. I run programs like InDesign, Photoshop, Illustrator and find myself watching the spinning rainbow more than I am getting any work done. Would getting more RAM help my computer run faster or do I have to resort to getting a new computer? Any help provided would be greatly appreciated!
This is what shows under my RAM window...
DIMM0/J4000:
Size: 512 MB
Type: DDR SDRAM
Speed: PC3200U-30330
DIMM1/J4001:
Size: 512 MB
Type: DDR SDRAM
Speed: PC3200U-30330

You have not maxed out your memory. Since you did not indicate which model iMac you have, see the following:
Rev A models - 2GB
Rev B (Ambient Light) - 2GB
Rev C (iSight) - 2.5GB
You can install the RAM yourself. Your user manual that came w/your computer has detailed instructions. Also see Article http://docs.info.apple.com/article.html?artnum=300205 iMac G5 DIY (Do-It-Yourself) Instructions
As Miriam already stated, make sure that the RAM you purchase has a lifetime warranty.
MGW, the servers are wacky again.

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