If your frames of reference are "G3s and higher" and "The Mac SE" -- I wouldn't worry about performance very much at all. If it ends up really being awful, then you can upgrade it later, get a better machine, or whatever. The ram is probably the first thing I'd upgrade though, given a few extra dollars, mainly because most people think that it's important to be able to run a bunch of applications at once, even on a midrange desktop from the early '90s when that just wasn't common.