Yes you can. You can increase the memory up to 1GB. If you are going to keep the memory inside then you should buy a 512 MB memory card, making your computer run on 768 MB of memory. If not then replace it with a 1 GB memory card. Remember, this computer can only support a maximum of 1GB total memory. The price depends on the memory module. The higher it is, the higher the price will be. Go to your local computer store for the price.
Go to Crucial Technologies' web site: www.crucial.com and have their site analyze your Acer laptop. It will check your system, and report back to you exactly how much RAM it will take and which kinds of modules it will need.
They will install a small bit of sofware on your laptop, to allow it to do the analysis, but it won't harm your system.
Then follow their instructions.
Now, depending upon which version of Windows you have running on your system, you can get a large USB Jump Drive, about 8 GB minimum, and then designate the maximum amount (4GB) to be used to enhance your system's memory.
That way, even if 1GB is the maximum physical RAM, you can go past that with the jump drive providing extra capacity. While it will say it is providing 4GB additional capacity, it is not the same type of memory as physical RAM.
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