Have old G4 want to upgrade but unsure what are limitations

hi,
i bought an old powerPC G4 533MHZ (CPU 11.3)
(only has 768 sdram currently)
videocard is nVidea 32MB AGP card.
was hoping to be able to upgrade this machine a lot and do quality video work on it. A friend of mine claims that it has terrible limitations and that even if i were to swap out the hard drive or try to make it a dual core, it wouldn't work. Bus speed is supposed to be cost prohibitive as well
how much of this is true? how much could i pimp this machine out?
thank you for any help you may be able to provide

Well, my 2003 MDD machine has yet to really overheat. In fact, it never did! It all started back in 2007 around the summer time. My machine at that time was a 733mhz digital audio G4 and I was looking at a more advanced G4 system. Originally, I had my sights on the lowest of the totumpole G5, but unable to afford it at that time.
So, I looked on craigslist under G4's and low and behold. I found this G4 MDD for $435! It has a dual 1.25 processor with 2MB L3 Cache per processor and large hard drive space.. a lot more than the digital audio has.
I jumped at the deal. The good news is that I have the modified power supply inside and my machine is quiet under OS X, though under OS 9.2.2, it can be a little noisy, but not too bad.
I use my machine for everyday tasks and have no need for windows applications, at least for now. I do plan on getting a intel mac mini, since I would never depart away from my beloved MDD!
Anyway, the processor upgrades for MDD machines are dual 1.6 and dual 1.8, but both these from Sonnet lack L3 Cache, which is why I am not going to get any of those because its not cost effective. I plan on getting sata hard drives to complete my upgrades for this machine. Already got a GEFORCE 7800 GS video card with 256MB memory + core image capability. I plan on getting Leopard, though right now I am satisfied with Tiger as all my software runs under Tiger better than Leopard.
My machine has never had any issues with reliability. Its a strong BEAST. The Digital Audio G4 has been passed down to my 9 year old so that he can learn on the computer. That processor is not bad either for basics, and what he is doing in grade school is basics.
I also have a sawtooth mac, though was going to use this as a server using Mac OS X Server 1.2v3.

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