For the record, I’m using XP Pro.
XP Pro SP3 is still a good os. It runs acceptably in a business domain on half a gig but the second you put a .Net app or a heavy program on there, you need a gig.
2 Gigs works really well. Up to 4 gigs, XP is always going to reserve about a third of the ram for hardware, so you won’t see it all.