Do you currently have one 2 gig stick or two 1 gig sticks? If you have one 2 gig stick it might be cheaper to buy a matching 2 gig stick.
That kit should work fine.
As for the processor, do you already have a Core 2 Duo or do you have a single core Celeron? Stepping up to a C2D would make a noticeable difference, but whether it's worth the money depends on how cheap you can find a processor. Core 2 parts aren't really sold in brand-new devices anymore, so buying one new means buying new old stock so you're paying yesterday's prices. Also bear in mind upgrading the CPU won't change anything else about the laptop, like the video hardware and bus speed. If your laptop is the base model in a series, check the specifications of the higher-tier models. Between that list and
http://ark.intel.com you should be able to extrapolate a list of processors that should work. If you want to save money, look for tested pulls (used parts taken from other laptops) or used laptops with broken LCDs (depending on the price). As long as the socket and bus speed match your motherboard, it should just drop in and work.
I can't pinpoint what chipset you have with 100% certainty. Could you please run
CPU-Z and post screenshots of the CPU and Mainboard tabs? It will tell us what hardware you've got to work with, and therefore what memory and processors you can use.
e: \/\/\/\/ That's why I think a dirt-cheap pull from a donor, eBay, or used parts reseller like geeks.com or Weirdstuff Warehouse is the way to go. It's not really worth putting more than $50 into, but it could work out if eBay has a cheap pull or parting out a donor makes up most of its purchase price. Even a low-end C2D will be a noticeable improvement over the single-core Celery in general. It's still stuck with the GMA 4500, but at least it won't choke when you try to do 2 things at once. Thinkpad T60-class machines should be hitting the off-lease market about now...
