|"my computer plays games perfectly"|
Maybe if you're playing games that are at least 5 yrs old? Your laptop is NOT a gamer...it has too little memory & the graphics suck.
"and doesnt windows xp need 128mb of ram minimum"
The keyword is minimum. And if you paid attention to what I wrote, I said, "although M$ may say differently, 512MB should considered the minimum for XP to run reasonably well."
Have you ever used a laptop that has 1GB or more memory? If you did, you would know how slow yours is by comparison. There's nothing you can do about the graphics, they're not upgradeable, but you can & should add more memory. A 1GB stick will cost you about $21.
Crucial 1GB 200-Pin DDR2 SO-DIMM DDR2 667 (PC2 5300) Laptop Memory
Satellite L25-S119 specs & review
ATI Radeon Xpress 200M review