whats the problem with both?, they are easily worth $75 each way. I think if you really have to chose the processor money is better although more inconvenient as it boost your computer's maximum performance level, but without that much ram you might not have a good time on it besides surfing, opening word and an excel at the same time.....ie. you will wanna close these before going with a game or major program...
It's your call, processor power is faster for everything but won't speed things up much when you've got 8 programs open at the same time (including TSR's or the little program icons in the lower right hand corner).