Hey Donna.
Where are you seeing the 118MB of RAM? The reason I ask that is because the RAM (Random access memory) is seperate from your Hard Drive. If you want to see the size of your new drive when you are in windows you can open up "My Computer" and look at the C: drive by right clicking on it and going to Properies. This will show you the size of the new drive you have installed (as windows see's it).
Also on the 68% resources free.. where did you see this? This could be because you have a lot of things starting up on your computer when you turn it on. There is an easy way to tell.. if you start up windows look at the bottom right corner of your screen and if you see a multitude of icons lined up there next to the clock that is a bad thing. Easily fixed.. but take a peek and tell us what you see down there.
Also.. what did you do with the old hard drive? is it still in the PC? Or are you only using the new hard drive? And when you installed the hard drive did you just use the restore CD on it and it put everything back on your computer?