My main MxO computer is a laptop. Here are my specs:
AMD Athlon 64 3000+ (1.8 Ghz, 1600 Mhz front side bus)
1.25 GB of RAM (originally had 2 x 256 MB, now 1 x 1 GB and 1 x 256 MB)
Windows XP Professional
ATI Mobility Radeon 9600 w/ 64 MB of RAM
There's obviously more but those are the important things. Sound-wise you'll probably want to use headphones. My laptop can run MxO on high settings, and only starts to crap out when you set the exterior distance past, say, 75% (no real performance dip, just building and character models not loading for a while). Just load up with a lot of RAM...that's seemingly the most important thing. It's nice to have a processor that's at least 1.5 Ghz too. A decent graphics card is always important as well, but as you can see, my ATI card can handle it even though it's pretty low end in comparison to today's cards.
well i boasted my ram to 1gig. It loads up. But i cant really do anything, my mouse wont move or anything..graphics are real bad too
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The amount of video memory doesn't make too much difference. The speed of the video processor and the total amount of system ram are the 2 biggest speed factors for MxO.