SYSTEM RESOURCES HAS NOTHING TO DO WITH THE AMOUNT OF RAM!!
System resources refers to the allocation of a very small section of ram. (64kb in win98/ME. It was only 32kb in win95. Unlimited in WinNT/2K)
System resources are used by programs to display windows, icons, lines, command buttons. Almost every graphical component that a program asks windows to draw needs some of those system resources.
On my machine windows uses about 20%, every copy of IE running eats up about 3%. Larger programs like Coral Draw 9 take up 17%, and 3D Studio Max eats up a whopping 54%.
You don't need to worry about resources unless you get down to about 15%. Below that dialogs will start missing buttons, windows will show up without title bars or scroll bars etc because there isn't any resources for the program to use to show them.
If you are running out because you use many large programs the only solution is to switch to winNT or Win2K.
ps. I strongly advise against using any Memory Defragmentors, Doublers, etc. I have never seen an instance where these programs have had a positive effect on performance - and they can't solve the resources problem(in fact they'd just make it worse cause they'd want some resources too.)