Bloatware it may be, but it is still the best office software you can buy which is why people do buy it. In droves.
There is absolutlely no need for you to buy more RAM - I ran win98 with Office 97 on 32Mb for a long time and it was fine. I put 128Mb in once I could afford the upgrade (was about 80 squids in those days!) and it ran perfectly.
Personally, I would get hold of a copy of Norton System Works 2000 (can probably pick it up for a few quid if you hunt around) and run its full suite of apps. This will clean up your regsitry (common cause of problems), optimise the disk and make sure you don't have unnescesary rubbish running in the background.
Make sure your virus definitions are up to date. If the free updates for your software have stopped and you don't want to shell out, get AVG anti virus from
here. It's totally free with free updates for life. It alos scans incoming email and it is very effective. It has stopped several worm attacks on my PC.