Help With Upgrade

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I have a minimum of knowledge regarding computer hardware although I have been tring to educate myself. However I have come to the point that I am just confusing myself. My current computer consists of :

AMD Athlon XP2000+ 1.66 GHz Processor
MSI KM266-8235 Mobo
768 MB Slot 1 256MB DDR PC 2700 166 Mhz
Slot 2 512MB DDR PC 3200 200 Mhz
Windows XP Service Pack 2

I use my computer mainly for e-mail, web browsing, Microsoft Office, Phototography, iTunes, and other multimedia . I plan on eventually upgrading to Vista and plan on buying an Apple Tv in the near future. The Apple TV reccommends a 2.0 Ghz Pentium or better and 32 MB of video ram. I don't mind spending more than the absoulute minimum for a system that will be up to date.
 
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