First, you would probably fair better if you increase your RAM. You probably need at least 1GB, but you could probably 'get by' with 512MB.
But the bluse screen issue may be some registry issue with your software.
Go to http:windowsliveonecare.com and follow the instructions to download and install. Then after installing, run a complete system scan. Seletct FIX when prompted.
This may fix the 'blue screen of death', aka BSOD.