On windows XP you can not add a USB thumbdrive to 'boost the memory and speed' as you can in Vista. So the best option would be to add a module of 1GB if you are in the need of extra memory.
(If you are for the moment low on free ram memory this will also boost the speed on xp.)
But please first check how much memory you use of you available memory. Else it could be a waste of money.
In task manager (check just before you shutdown, after you have worked a whole while with the laptop, also check this on several moments and after you used all programs you normally use)
Tab Performance Compare Physical Memory total with commit charge Peak
If your physical memory is higher than your peak then adding memory will not help much.You could then better save you money to buy a new laptop.