I was talking about that specific situation in a browser since we're talking about browsers. Like in a forum thread where people post a lot of high resolution photos usually of women and some people post about how it made their browsers lock up or have severe performance problems.
Yes, I am talking about IE running in a 512Mb XP and a 800Mb Vista, plus other things like Visual Studio. They all work fine. Slow yes, but no crash. In fact, I am running hulu in the 800Mb Vista VM now (with VS compiling in the background)
And I have just tried hulu 480p in my office ("Merlin"). This time with enterprise network. There is zero choppiness on the PS3.