In fact if you open the Windows Task Manager you can see how much memory you are using.
If you are using XP or Vista then press these three keys one after the other, but DONT let go of the keys (they all need to be down together)
Press Ctrl, then Alt, then Del
XP and Vista are slightly different, but you get a chance to open the task manager.
The Task Manager shows you what is running on your computer and how many resources it is taking.
In the Task Manager click on the Performance tab.
The lower window shows you how much memory is currently being used.
I have Vista and 2Gb of memory. If I look in the task manager it says 865Mb of memory is currently being used.
So my PC would work happily with 1Gb as it is currently using less than 1Gb (if I started a few programs it would then go above 1Gb and start to slow down).
In case you cant get to see the Task Manager for some reason here is a picture of it:
http://www.edbott.com/weblog/images/task_manag er_mem_small.jpg