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I think the guys at that place are right. What is most in need of upgrading is the 450 mhz processor. The rest is pretty good, you could manage without any real upgrades for a long time and still be reasonably up to date, but the processor is the heart of the computer, and, although a 450 isn't bad, you could do with something a little faster.
The other parts are really up to you, they're not that important, and can be upgraded quite cheaply at your leisure anytime in the future.
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