Most likely but before doing anything open the Device Manager and list all installed Devices. Once this is done go looking on the Net for XP Drivers. If you can find XP Drivers for all your Devices than download them and copy the Unzipped Drivers to some External Media so you can load them after install
At this stage Backup all your Data and then Wipe the HDD with a Utility like Boot & Nuke available free from here
http://tinyurl.com/4rfur
After the Drive is blank you can install your Licensed Copy of XP and then when finished you'll need to install all of the Drivers that you have previously downloaded.
As for the Max Amount of RAM XP only supports 4 GIG at best so that would be the Upper Limit without wasting money. Vista will use more RAM so if you stick to Vista look in the Owners Manual under RAM to see how Much & What type to fit.
[i]I ALSO WOULD LIKE TO KNOW DO I HAVE ENOUGH SPACE TO ADD IN A 3D GRAPHIC CAD?[/i]
Do you mean a 3D Graphics Card or CAD Program here? If it's the Software how much HDD Space do you have available that will tell you if you can install it. If you want to fit a Video Card you'll have to look inside the system to see what can be fitted and the type of Video Card to buy and if there is any space for it.
[i]I ALSO WOULD LIKE TO KNOW WETHER CAN I ADD IN AN OTHER PROCESSOR ?[/i]
The full Specifications for your system are listed here
http://tinyurl.com/3xm9zn
As this has a ECN M'Board fitted to it I personally wouldn't bother upgrading anything as the M'Board is very likely to fail and you'll need any Warranty to keep the unit running. If you change any Hardware the Warranty is normally Voided.
Col