Powermac G4 Hardware Swaps & Upgrades

Hello BB'ers - My 13 year old son was just given 2 G4 Powermacs for his personal use. He wants to do nothing but search the internet and create short 1-2 minute videos for YouTube. I want to make 1 decent running G4 out of the 2 he has. Yes these are old, slower, relics and once he gets the hang of using Macs I will either keep adding on to this one or just ge him a Mini. Here what we have and any suggestions on where to go from here would be great appreciated.

#1 (will be the user machine and is currently up and running)
Powermac G4 Sawtooth - currently has the 500MHz processor
OSX 10.2.8
80 Gig HD
382 MB Ram Memory
100 MHz Bus Speed
L2 Cache - 1 MB
AGP Graphics

#2 (parts machine)
Powermac G4 Sawtooth - 1.2 GHz OWC Processor
25 Gig HD
256 MB Ram (will put in user machine)
Everything else is the same as #1

Heres the problem. I did the processor swap yesterday by putting the 1.2 in machine #1 and it booted up and ran for a few minutes then froze up. I emailed back and forth with the OCW tech support and they instructed me to set the 2 jumpers at #1 ON # 2 OFF which I did and it still doesnt want to run this processor. Do I need to configure something in the system before I make this swap? Is this just not possible to do? Any help and or appreciated with this. Would this machine handle a dual processor?

Finally - what would be the next cheap immediate thing I should do or add?

2.0 USB PCI Card?
More Ram of course

Cheers and thanks in advance

thanks for the sugeestion - I checked and it does have the 4.28fi

would it be good to add the 2nd hardrive as a slave? The only issue I see with doing this is the Master that is currently running doesnt have any jumper pins - it has the jumpers just not the pins. The slave has pins.

The parts machine has a bad video card and a smaller hardrive - other than that - nothing. also has OSX 9