You shouldnt really need more ram, though the machine will go a hell of a lot faster with it. The problem doesnt sound ike it has to do with a lack of ram - what do you mean by the 'welcome blue screen' is this the boot screen for the cd or dvd that you are trying to install ? it could be that you have a cd for the wrong architecture - make sure you get the x86 cd! it could be a whole load of other issues as well though!
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