I don't know what's more sad:

The fact that it has 128MB RAM and it's running windows XP

or the fact that XP is not Genuine ^_^

the third thing could be that I don't have 256MB ram (which is the max per slot) and one of the slots has the holding tabs removed and/or it's dead.

I guess it just gets 128MB memory and it's stuck with windows 2k Pro :-/