Optiplex Hd

What upgrades are recommended for my dell optiplex 110. I want to upgrade the hard drive and ram.?
Im running windows 2000 professional edition and i want to put 512 mb of ram and maybe 40 gb harddrive (can i use an external hd maybe or should i replace the internal one).
Also there are three memory slots which two are for the memory and whats the other slot for or are they all for memory? which two are the memory slots? when i replace the memory i just take the memory stick out of the slot and replace it with the new one correct or is there something im missing.
Any help would be apreciated i just want to learn the basics of these things before i try it on more expensive computers. I bought this for 50 bucks so i dont care if i mess it up its a learning toy hopefully with your help i wont break it ill make it better. thank you you yahoo users you.
If you don't have the installation disk and drivers disk, I wouldn't bother with upgrading the internal hard drive. If you have USB ports you might add external storage capacity by getting a flash drive or external hard drive.
http://www.datapro.net/techinfo/usb_info.html
http://northonline.sccd.ctc.edu/dogs/DELL/ServiceGuide/index.htm
http://docs.us.dell.com/support/edocs/systems/opgx110/en/ug/intro.htm#hardware_features
http://docs.us.dell.com/support/edocs/systems/opgx110/en/ug/memory.htm#installing_dimms
http://www.fixya.com/support/p349274-dell_optiplex_gx110_pc_desktop
http://www.answers.com/Optiplex%20Gx110%20Specs
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