With so little memory it's almost certainly a memory-related issue. TG2 uses a sort of baseline amount of memory that can be measured in the 10's of MB even with the default scene and anything you add only increases that, of course. Having had experience working in TG2 on an old PIII I know it's not much fun. Of course not everyone has the luxury of upgrading, but if you're ever going to have much fun with TG2 I think you'll have to at some point.
- Oshyan