well, regardless of what OS you use, the only other things you can do is disable idle backround programs (which is much easier to do with XP), use minimal jewelry on your ships, and play smaller maps.
i rejected XP for the longest time. then i got over it. personally i woudln't recommend waiting for Vista though unless you were also planning to drop major cash with an upgrade or new PC. i don't see the point in worrying about Vista unless you're also planning to exceed 4GB or drop the cash on a 64-bit processor. for your immediate needs, an upgrade to XP to support more RAM would help, at least running larger games.
i'd guess your processor should still be able to handle this game, but your graphics card was low end when it came out several years ago. unfortuneately, if that's an AGP card you're pretty out of luck, unless you can find a better outdated AGP card on eBay, or also have a PCI-express slot. the other things to consider is if your motherboard will even be able to handle upgrades at this point.
but RAM, at least, is pretty cheap, so you might want to consider upgrading to XP and throwing in another 512. it would at least prolong the life of your machine a bit longer.