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Upgrading my Dell Inspiron 1501 laptop?

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Last response: in CPUs
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Alright, this is an old Windows XP 32 bit 1.8GB RAM laptop, with 120GBs of HDD, I believe 1366x768, don't quote me.

I would like to spend some dough to upgrade it, I tried a pirated WIN 7 os (relax, just seeing if it runs swell enough to buy it) and I was wrong, dead wrong. Could I buy a better CPU for this comp? The current is a AMD Athalon (<---typo?)
II. Dual core.. 1.8 or maybe 1.6GHz, not that bad, why is it so laggy -.- there is NONE, NO! drivers for Win 7, thats why I figured Win 7.. is not going to work? I don't mind Linux or Ubuntu. Fastest and easiest :) 

(I know how to use both win/linux, as I am a very mild coder for linux :p )

In super short: So what options do I have to upgrade my old Dell Inspiron 1501, or am I better off just buying a new laptop?
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