When it comes to Adobe's products each new version seems to need more resources and Elements is no different.
You are right, RAM advised for this one is 1gb, according to this
review.
You might consider increasing your 512mb instead of having to upgrade the computer. However, before you go ahead with one or the other give
Enditall a try, still available for free use.
I used Enditall on my old computer, (512mb RAM), for Elements 5 without any problem. Enditall shuts down all unnecessary running services including your Anti Virus with one click, leaving enough RAM for Elements to work with. It still comes in handy when I dust off the old 'un and do some work to keep the machine running well.
When finished your editing restore those disabled services simply by restarting the computer.