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Just to add, if you do as Oldboy says and increase the maximum RAM photoshop can use, remember that this is the most possible it can use, if there are other applications running then Photoshop will not be able to use that maximum figure, so when you're doing some intensive work with Photoshop close down any programs you don't absolutely need, and don't go burning DVDs etc!
Also consider upgrading the OS to Vista 64 or Windows 7 and buying another stick of RAM (£25 for 2GB) although CS3 is only 32 bit and can only access around 3.5GB the OS can use the whole 6GB leaving the full amount for CS3 to use.
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