Rainspecialist, what model HP Pavilion do you have? "HP Pavilion" doesn't tell us anything, all HP consumer PCs are "Pavilion". I have a Compaq (currently same as HP) and 2 old HPs sitting here at my desk. The HP I use to race on was model 564W. It had the same specs you have.
If this is what you have, you simply need a dedicated separate graphics card. The graphics you have is onboard Intel Extreme, garbage (I assume, thinking you have the same HP model I had). Problem is, older HP machines off the shelf don't have an AGP slot. Your's probably only has the old pci slot, which mine did as well. There's not much you can do about it.
If you have the old PCI slot, they do sell cards still that you can get, but they are still going to be quite garbage compared to what you can put in a newer computer. Anything is better than Intel Extreme Graphics onboard stuff, but unfortunately, it's not a great "bang for your buck". They are a bit ridiculous in price for what they are, very very old.
Examples:
http://www.newegg.com/Product/ ... ;bop=And&Order=RATING
And, for that old HP machine of mine that I mentioned, I had this particular card that I bought 2 years ago, at the same price even....
http://www.newegg.com/Product/ ... aspx?Item=N82E16814103167
I'm not saying that is the best of the bunch from the first link, it's just the one that I picked because I didn't know anything about graphics cards at the time. But, compared to my Intel onboard GFX, it helped out quite a bit, but as I said, it's still very old technology. But it would probably do you better than more RAM I am thinking.
A waste of money upgrading anything, really, when talking about an HP machine off the shelf that old. You simply need a new everything. You have my sympathy though because I was sitting exactly where you are a year ago.
PS, along with your specs you mention, mine was the same except I did have the 1 GIG ram that everyone is telling you about. I was still stuck at very low framerates in LFS. FYI, I raced in "wheels view" to get my 30-40 FPS back then. After getting that card in my link, all it really did for me was net me the same framerate, but let me drive in the "cockpit view", which was all I really was looking for. It still looked like crap and still netted me undriveable framerate at the start of a race until about halfway through the first lap when the field spread out.
One other thing, by installing a dedicated gfx card, no matter what it is, you will be freeing up a bit of that RAM you already have because the onboard gfx will no longer be sharing. I'm guessing your's currently is 64 mb shared with video, that's what mine was.