It's not THAT bad. I had a G4 iMac and I replaced the memory, hard drive, and Superdrive, all in the vain attempt to make it faster.

I had just bought the machine, so I had no emotional attachment; if you've had yours a while (seems like you have), then its well worth maxing it out. Get a 1GB stick for the inside and out (2GB total) and a 7200RPM hard drive with as much cache memory as possible (check on it, but the HD may be limited to ~128GB in these - you can use larger, but that's all it will see) - remember the HD is the old EIDE type. Buena suerte.
EDIT: From what I'm seeing, if you have a 1GHz model with USB 2.0, then the hard size isn't a problem. Not sure if its USB 1.1, though. What size is your screen - 15" or 17? If its a 17", then its USB 1.1 - if its a 15", then its USB 2.0 (at least according to everymac.com). Also, (again according to everymac) if its a 17" its a 1GB RAM max, if its a 15" its a 2GB RAM max.