Should I upgrade the hardware or replace the laptop?

I have a late 2006 model Macbook that I received in Decemeber 2006. I'm interested in purchasing a new Macbook, but am also wondering whether I should instead upgrade the hardware? The Macbook seems to always be pushing itself harder than it should as the fan is always audible and always has been, so much so that when I use Skype the person on the other line can't hear me very well because of it. It heats up like crazy too at every use. Sometimes it runs so slowly that it can take 45 minutes to even just close some tabs and windows down as it has to think about it first (spinning beachball). I'm in Uni at the moment and have been for a while now and would love for my laptop to run like it used to when I first got it, or even be able to update it's software (but even that's not possible because it's hardware isn't compatible). I've transferred a lot of my data onto an external harddrive to free up some space and help it run better, but it's still pretty slow in comparison to today's computers.
Any ideas?

i would suggest going for a new Macbook or a refurbished one from Apple.
normally, i would suggest upgrading the RAM and swap the hard drive for a SSD.  unfortunately, that might not even work for you.
once you upgrade your apps to the current version, they tend to be more memory and processor intensive.
so upgrading your macbook might be a waste of money.
again, those are my thoughts and you can either go with it or ignore it.....
If you own a late 08 Macbook Uni like I do, then I would suggest to upgrade the RAM and go with a SSD to give it a couple of years more but because you have a 2006, buying a new one would be a better option especially if you want to install Mountain Lion.
good luck..

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