Can I add a larger amount of RAM and a graphics card of any higher quality sort

As for RAM,it depends on how much RAM your laptop supports(but its upgradeable)
But the VGA is not upgradeable.
And yes its possible to install windows 7 Home/Ultimate on it

I was thinking maybe 2 or 3 GB of ram. And thank you very much.

If it supports 2GB/3GB,then upgrade your current RAM  
And you are welcome  

no you want to convert a netbook to a notebook and that's simply not ideal
netbook should be left as it is from factory and is for simple use of internet only
not movies and dvd burning ect..

leave win7 mobile, its specificly designed for netbooks for a reason ok

how's iran? many ppl own computers down there, would you say the average is 1 out of 10 or 1 out of 3? or everyone

Check your PM's,i don't want to go off-topic here