That is the probably the speed the processor is running at.
Speed Step, I think that is what Intel calls it, underclocks your processor to save on power when it's not needed. On laptops, the settings are especially agressive to conserve battery life.
Yes another gig or two of memory would help. Just get exactly the same kind you have. You don't need to worry about trying to upgrade your memory speed, on a laptop it is pointless. But as I said, more memory would be helpful.