It depends on the other equipment involved, you didn't mention the current speed of your hard drive.
Basically, USB 2.0 is faster than FW400, though FW800 is faster than USB 2.0 and FW400. Though this is just the capability of these types of device. Obviously the speed of the actual hard drive (as obviously you didn't mean a flash USB device as a scratch disk). Yeah anyway, it should be fine.
As to the question regarding the RAM, I would hazard a guess having 2gb of RAM, put the memory setting on 75%. That should be more than enough for most things you'd probably be doing.