How to upgrade Satellite M70-CL1?

I bought my laptop in 2006 for college work, and now I use it when I'm traveling or visiting friends. I mainly use it just for browsing the internet, some word processing, etc. I would like to be able to play small or older games on it, but it's mainly just a surfing computer.

Toshiba Satellite M70-CL1
Celeron M
60 GB HD (35 GB free)
Intel Celeron M 1.6 Ghz
448 MB Ram (According to MyComputer properties, but it was 512 when I bought it...does RAM lower over time?)

I have about $200 I can spend right now, and I'd like to upgrade my laptop but I'm not sure what to do, or even if it's worth upgrading. I find that startup is very slow sometimes, and I've stopped some of the programs that used to run on start up, so it's a bit better, but I usually have to wait about 10 minutes to open Firefox after I start up the computer. I'm also a big multi-tasker, and I can't seem to use MSN and have a browser window open at the same time without a major system slowdown. OpenOffice also takes about 5 minutes to open the first document I try to open, then after OpenOffice is running it will only take about a minute.

I would like it to be a bit more usable, so I thought about getting more ram...maxing it out to it's 2GB potential. Is that my best course of action? Should I upgrade something else? Maybe my processor (if you can do that on a laptop)? Will it make a noticeable difference or should I wait and save and buy a new computer?

Thank you!