I've been sticking 1Gb in my old machines with 512MB RAM as basic; costings at about £20 per PC even at our small volumes.
Depending on the applications you use would it be worth considering using the money for a terminal server + licenses rather than increasing the memory? If you use them as RDP terminals with something like thinstation you'll get better performance and have increased scope for good remote access as part of the deal. It would save on Windows 7 licensing as well if you aren't on an MS schools agreement.
My thougts are and MS recommend 2gig of RAM for win 7, 1 or gig will get them going but start running anything intensive on them and they will run slow. You might get way with 1.5 but I would test them in a classroom situation first, logon as a standard user and run a couple of heavy apps. You should have no problem with drivers, I'm installing 7 on 4 year old laptops and never had a major driver issue.
DDR2 400 is hideously expensive - it's always the same with older ram becoming more and more expensive as the factories produce less and less of it. Try buying some PC100 ram now!!!
I considered the exact same plan hoping to upgrade some 100 PC's - unfortunately I wouldn’t want to go from 512 to 2gb if I was going to go to the hassle of ripping the tops off them and that would work out at about £60-70 per PC. It's simply not worth spending that much on 6 year old PC's so I'll be putting the £6000 - £7000 towards new PC's.
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