Processor is slow by todays standards.
RAM is low, but is as supplied by many desktops thesedays (the cheap ones) - Assume you mean 512.
Ram is upgradeable, but can be tricky in laptops, and more often than not, has to be manufacturer compatible to the laptop (desktops are far easier!).
Processors can be upgraded in desktops, but it would end up costing more than the machine usually. I do not believe you can on laptops, and if you could, it would be cheaper to get a new one!
In saying all this, my old laptop here is only 1.79Ghz and 384Mb RAM. It is 4 years old now, and was cheap at the time. I use it for surfing, Microsoft Office, creating Web Sites, playing music, email (outlook) and also for connecting to other machines using Remote Desktop. I also have several bits of software for programming PBX telephone systems and alarms.
I find it slower than my desktop, but not too bad to be honest. The worst thing is the start up time - around 4 mins I suppose. I usually leave it on during the day, and fairly often during the night - 4 mins is a long time!

I am looking to replace at some point, but do not find it too bad TBH!