As already suggested, other than adding RAM, you're pretty much maxed out.

What I would look into, if I was limited to this hardware, would be another software. Adobe CS3 will not do a good job editing AVCHD - you might be able to play back in real time your footage on the timeline, but probably only without any effects. Once you apply effects, there will be no more real time playback.

Not sure what else is available out there, but for $200 you can pick up Edius Neo, and for the casual editor that will provide everything needed, including some phenomenal optimizations for AVCHD. Go download the trial and see for yourself.

Others might be able to suggest other programs as well.

I hope this helps,

Unfortunately, an upgrade to an i5 will also require a new motherboard and new DDR3 RAM. And due to the lack of HyperThreading the i5-750 or i5-760 will be slower than any i7 in video editing especially in software that thrives with more threads (although an i5-750 will be somewhat faster than a Core 2 Quad at the same clock speed).

And not all i7 systems are equal. In fact, an i7-8xx system on Socket LGA1156 with a P55 chipset is lackluster at best even when highly overclocked because of its limited memory and DMI/QPI bandwidth.

Finally, I would not recommend any more RAM on the OP's current system. This is because the cheapest worthwhile 4GB dual-channel DDR2 memory kits are now more expensive than many of the good-quality 4GB DDR3-1333 dual-channel memory kits. That alone makes upgrading RAM on an older DDR2 system uneconomical.

This is starting to seem like my best choice. To completely upgrade my set up will be just under $500, which isn't bad. Later this year I'm sure that number will drop significantly.

Thanks Steve great website! I have a big Thermaltake heatsink so that should keep me cool. However looks like they only offer in-store pickup for processors : (

Going to pick up an extra 4GB of RAM. Found for $80 so that's not twisting my arm too much, made by Crucial. Right now upon playback of corrected footage [un-rendered], my RAM shows 62% and my CPU shows 82% (Windows 7 widget). This was only on a single project and playing for a few seconds so probably not the best representation of performance. But it seems my processor is more of a bottleneck than my RAM, right??

If I can find a way to get a hold of the processor from Microcenter, I may grab that. Otherwise, I'm saving for an i5 setup. Thankyou again everyone for the advice, without you I would be on a downhill course.

JS

Yes, you made the right choice given the current circumstances. Right now the price for that much DDR2 memory is as low as it will ever be for the remainder of its production life cycle because the memory manufacturers are now concentrating nearly all of their resources on DDR3 memory and future system memory technologies.