With 128MB of ram you will criple your machine. The problem is that you may not be running alot of programs where you can see them, but in the background there's alot of things load up when windows does. Especially if your system holds spyware, it can be the sole cripler of your ram. If you currently only have 128MB, i recommend getting 256MB, another 128MB will still barely only cut it with XP plus doing other things.
It's not really a bandwidth problem so much as a space problem. When your computer runs out of space to place programs into memory, it must us 'virtual' memory. This is a file on your Hard Drive that windows will use to store programs if it needs to. With memory, you'll get roughly 700-800MB/s transfer speeds, with a Hard Drive you will get about 50-70MB/s. This of course is all depending on your hardware, but these are soome rough estimates. As you can see, it really slows things down to have to use the page file.
If money's tight, 256MB should do, but if you got the extra money, go for 384, you won't regret it.