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It actually depends on what currently the problem in your system is. But generally speaking, your system would benefit from having 512 MB. Don't go higher than that if you continue to use Windows 98 though. Windows 98 cannot handle more, without doing some major tweaking to the setup.
 
My system was able to handle CK in it's older configuration, with just 192 RAM, but my current configuration has very similiar problem, very jerky mouse movement at menu.

Oh, you could also try disabling sounds, music and tiles. Especially tiles if your RAM is low.
 
Depends on how all the parts work together.
 
Certainly. My current hardware configuration differs from older hardware by missing one very old HD and having different video card, but this current configuration is underperforming horribly.

But I think the original poster's problem could very well be performance related.
 
What about operating system?
 
Well, he did say he was running Win98 SE.

I run that myself, on both my rigs. And my second rig does have one of those NVidia GeForce 2 MX boards as well, and that one handles CK just fine. The difference is, that my second rig does have 384 MB installed, and uses Intel's rock solid 440BX chipset. ;)

Which leads me to think in the direction of the horrid Infinite loop problem, this time caused by (probably) overloaded north/south bridge interconnect due to excessive swap file access.

So, without further ado, here is the link with hints on how to optimise the memory usage of the system. http://www.europa-universalis.com/forum/showthread.php?t=147392