I would like to upgrade my CPU from the current 1.6 GHZ to something a lot higher and faster. What kind of processor can I get? Will I have to reload all my programs and Windows XP or will they save on my hard drive?

you should be fine on all that but a good clean install never hurts. just remember Xp will only allow so many Hardware changes before you have to do a clean install. "I mean major hardware changes"
Plus you might want to backup certain file that you would hate to loose on the off chance your system doesnt take to the upgrade.

On the Cpu upgrade part you need to find out what socket your running then check and see what the max speed that socket will take. just goolge it or check your moather board manual. most the time they say what it can handle and most times recommends.

"We can't solve problems by using the same kind of thinking we used when we created them"

It's a laptop, right? The CPU will only run as fast as is necessary to get the work done.You have 2GB RAM & one of the best CPUs going. Don't be fooled by the "low" clock speed...it will outperform other CPUs that are clocked much higher.

If Toshiba is like most OEM builders, the system is loaded with bloatware. If you haven't already done a complete cleanup of all that garbage, give it a shot.

I concur with Jam.

try a google search for "crap cleaner" - it works pretty well for me :)

A couple of things I might add:

The T2300 is not to be confused with the Core 2 Duo. And it also does not support 64-bit computing.

Hmmmm. I know the Core Duo is not the same as the Core 2 Duo but I didn't know that it didn't support 64-bit

"Intel began branding the Yonah core CPUs as Pentium Dual-Core intended for lower-end mobile only computers"

"Intel 64 (Intel's x86-64 implementation) is not supported by Yonah. However, Intel 64 support is integrated in Yonah's successor, the mobile version of Core 2, code-named Merom"

http://en.wikipedia.org/wiki/Intel_...

Back to OP you bought a low end Laptop which is not meant to be upgraded.....

All the above is correct. It sounds more like a bunch of bloat ware is loading in the background and slowing you down. Especially if it's an OEM Tosh*ta, on a new XP system, there is about 50 things running in the background that need to be disabled or removed.