hey experts tell me what is better for me?please help me and solve my problem!

I have Intel dual core 2.0 ghz processor(E2180) with Asus P5KPL AM In mobo and 1GB DDR2 RAM.I have 1TB HDD of WD caviar green (WD10EARS) . now - my problem is processing speed and multitasking. I have do various tasks at same time e.g. net surfing with many tabs open at same time, movie watching, work on Softwares and downloading and sometime play games. My PC run for 20-21 hours. so every time I face this problem of system hanging and slow running and many times I have to restart it.
I couldn't find the right solution about it. I thought about these point -

1. build new CPU with 3rd gen. i3 processor (like i3 3220) and 4GB RAM but I heard that it wouldn't give good result comparing with my dual core.means i3 is not so much better than dual-core.

2 change my processor from dual core to core 2 duo but some persons say it is not so benefic .

So, I'm in confusion and I've not big budget to get i7 but can think about i5 . My budget is 12000-15000 Indian Rupee(approx. 280$). So, what I've to do now -
tell me about all possibilities for fast processing and good performance.
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  1. Any 3rd gen i3 would run circles around that ancient processor. Whoever told you the newer i3 would "not be much of an improvement" from your current processor musy have been high. Not only does the new i3 have infinitly better IPC (Instructions per clock) but it has hyperthreading as well; which allows the OS to see the processor a shaving 4 threads which would help with multitasking in most situations. HT has come a long way.

    Option #1 sounds like a very smart decision on your part. You will see a HUGE increase in performace. Like night and Day difference.
  2. if you have a free slot and you are looking for the cheapest solution i would go with a ram upgrade. 1gb is wayyyy too small. if you add one more it would probably make a difference. when you have these setbacks just open task manager and see what component is working the most. if you have high cpu usage i would go with the upgrade and agree with bigj1985. but since you encounter this problem after a while, i suspect you have filled out your ram space.
  3. get i3-3220 + b75 board + 8GB (4x2GB) ram
    total 6+4+4=Rs14k

    i3 is 3 times better than your current dual core

    if can expand your budget then consider including 60-90GB ssd like kingston 60GB v200+ which costs 4000
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