Agree with Thalmus though the more memory the better, it would run smoother and faster and allow more programs to run at the same time. If it only has 32mb it has to be a older second hand laptop. Depending on what you're paying have a look here as well click here but be aware of the short guarantee times.
When you said 32mb memory I assumed that was system memory and it was an old 486 laptop, I didn't realise you were on about the 32mb graphics which s borrowed from the system memory. Sorry I misunderstood, can't advise on the laptop itself as to be honest I don't know enough about the differences between the processors. Regarding the RAM XP will run quite happily on the 224mb you have left albeit not especially fast.