Queries on SQL 7 settings running on NT

Can someone pls help me on my queries pertaining to SQL 7 settings.

Environment:
SQL 7 running on a NT4 Server with 1.4G of RAM and 2xP3 550mhz CPU.

1) My current setting for Parallelism is “Use 1 Processor(s)” under Processor of the SQL Server Properties. The other available option is “Use all available processors”. Many times, I encountered the SQL processor, sqlservr.exe hogging the CPU at 100%, thus slowing down the system drastically. Will setting the option to “Use all availableprocessors” overcome my problem.

2) What is the ideal Memory setting on the SQL Server. My current setting is using “Dynamically configure SQL Server memory” with Minimum = 0Mb and Maximum = 1.4G.

Your advice will be fully appreciated. Thks.