I agree with the new computer route... A new $500 computer is certainly worth the "Hassle Factor" involved in making your old computer healthy again.
Now for the technical.... As GG said in her post, I suspect your virtual memory problem is simply a "housekeeping" issue....old hard drive, lots of temp files, cache's, etc. A nearly full hard drive would cause your automatically calculated virtual memory size to be reduced, "potentially" causing your problem. I say potential, since there could be other issues at play, which would contribute to the Hassle Factor of trying to repair.
Finally, I agree with PTurner..an iPad would not be a replacement for your "primary" computer. I plan to buy one next week, when I'm in the States, but it'll simply be a toy.
Good luck!
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