LOL @ RAM.
Vista needs AT LEAST 1gig to run decent. 2gigs for it to run well. Your HD’s better be good because Vista does a lot of indexing for oh-so-awesome searches that you probably won’t make.
Office 2k7 needs at least a gig of ram to do spell check/grammar check (I shit you not) but overall it’s not too bad. The real power of Outlook '07 is when it’s paired with Exchange 2007.
In closing, you should smash your PC, Office Space style and then get a new one so you can get shitty software to run well. 
Good luck.
BTW, pm me your cell phone#. I lost it and am in desperate need of a ZJ this weekend.