How to Upgrade my Sony Vaio vgn-s460, currently its a 70gigHDD, 510RAM, PentiumC

I would not sink any money in 7-years old laptop with poor driver support from the OEM. You can probably upgrade the hard disk, and upgrade memory to 1GB. And no, you cannot upgrade the processor.

As for XP -> Windows7 - with PentiumM, and just 1GB of RAM it will be slooow, and no one (not even Sony) knows how many drivers you'll be able to find for this.
 

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