Yep, ram and cpu are the main problems.
What you can do to mitigate or lessen the problem atleast to a level of "manageable" is to close background progams to free some RAM, check and repair registry for errors, disable some unnecessary startup programs, and ofcourse scan for viruses and malware.
(or just simple reformat and start from scratch, that way your laptop will be fast and brand new)
If youre browsing dont use Chrome because they say it hogs huge memory, search for lightweight browsers like safari or anything, google mo nalang. And install flash player din. good luck.