High memory usage by SQL7 on NT4

I have a NT4 Server running MS-SQL7, with 1.4G of memory and consisting of 2 P3 550Mhz processor.

Viewing from the Task Manager, the process, sqlservr.exe memory usage is always at around 1.2G. Very often the server will slow down tremendously hitting 100% CPU usage.

My question are, (1)is it a norm for the SQL process to be using such high memory and (2)will this be the reason for the server to encounter a 100% CPU Usage