Actually, it will max out at appx. 3.3 gigs if you put 4gigs in it. Yes One gig of ram will help. The other thing that can speed up those macbook pros is a 7200 rpm harddrive. You just have to decide how much to spend on an older machine.
Did it to my Macbook, never looked back since. Upgrade your RAM if you can, so since you can; upgrade to 3GB. I can run After Effects, Photoshop, Chrome and Blender at the same time without any crashes or problems (bit slow but that's expected).
If you want an additional speed increase consider upgrading your HD, refreshing this will not only give you more disk space but also significantly speed things up for you.