Build a PC Windows 2003 based server running very slow

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Hi all,

I am currently on a voluntary placement in Indonesia helping out an NGO with some I.T. They have a windows 2003 server with the following specs thats causing me some grief, and I was hoping you could help

Motherboard: Gigabyte GA-8I848P775-G
CPU: Intel pentium 4 775
GPU: Radeon 9250 128MB DDR 64-bit
HD: Seagate barricuda 7200: 1x 120GB, 1x320GB
RAM: 1GB Hynix DDR PC3200
OS : Windows server 2003

The problem is very slow running and slow response times. The PC POSTs normally, but loading of the operating system is very slow. It takes 1-2 minutes from POST to login screen. Loading then takes a long time. After this, I can open the start menu, bit it is a little slow. Opening the programs sub-menu is then very very slow, causing the computer to freeze. Any intensive task also causes the computer to freeze for a long time before the operation is completed.

What I have Tried
I opened the box up to check for dust. Its a pretty clean machine. CPU temperature is approx 40c according to BIOS system monitor. Several reboots have of course been tried. I have tried loading fail-safe defaults. Task manager shows no abnormal processes or excessively high usage for any processes.
I have loaded msconfig and switched to minimal boot. This resulted in only a minor improvement.

The problem is complicated in that this organisation is non-profit, and so I cannot simply try replacing parts until something improves. My take on the specifications is that this machine should run smoothly. I have the option to re-install with windows XP or with server 2003 again. The machine is intended to be used as a server, I was hoping to load MySQL onto it. The machine was pretty much unused for a long time before I arrived.

All suggestions welcome, thanks,
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