About the L2 thing: You have your basic memory (RAM), where Civ is stored where it's running, and yes, with XP, once you have 512 MB adding more won't help you with CivIII (though it certainly will with CivIV). Then you have what's called an L2 (level 2) cache on your processor that allows your processor very fast information to data - much quicker than to data stored in the RAM. However, L2 is expensive, so you don't generally have a whole lot. Most new low-end processors have either 512 KB or 1 MB per CPU core, whereas most high-end processors have 2 MB; some have 3 MB. You also have L1 cache, which is even faster than L2, but more expensive. Most CPU's have 32 KB of L1 cache; I'm not sure how much/if this has significantly increased in recent CPU's.
The end result is, the more L2 cache you have, the faster the processor can access data. Which causes fewer delays due to waiting to data, and thus faster turn times.
Pretty much everyone has this problem on big maps. Even the fastest processor won't get rid of the delay, though faster processors certainly will shorten the delay. Whether your 2 GHz processor is already pretty fast by today's standards depends on whether it is a Pentium 4 (Willamette or Northwood revisions are both possible) or a Core Duo / Core 2 Duo. The latter are newer and far faster per megahertz, and would be approximately equal to a 3.7 GHz Pentium 4 Northwood (based on extropolations of my IBT time on a Pentium 4 Northwood and a Core 2 Duo). If it's an AMD someone else will have to help with the comparisons; I too have only ever owned Intel.
Dell generally locks the multiplier on the processor so you can't overclock it because otherwise they tend to have the problem of customers who want faster speed but don't know much about hardware overclocking the processor far too much and destroying it, and then trying to get it replaced by warranty. There are technically ways you could still overclock it, but the risks are great enough that you're really better off buying a new processor for faster turns.
Other settings in Civ that may help are disabling harbors (they are notorious for making trade routes that take forever to calculate), playing with fewer civilizations (I noticed a significant increase in speed once my 31-civ game got down to 14 civs, despite there being just as many cities), and the entirely unsatisfactory possibility of playing on a smaller map.