yeah that sounds like its way too slow... granted thats not the fastest computer, but it shouldn't take that long.
Did you check to see what programs are eating up all that memory? That sounds way too high at 700mb. I have about 275 albums and xlobby take about 108mb is what I just found.
Anyone else here have close to 700 albums like str1der? How much memory does xlobby take up for you?
You could always try a fresh install of xlobby, update it with the latest exe
http://www.xlobby.com/xlobby2.zip
and the last copy of my skin i posted
http://www.xlobby.com/files/jowaldo/jowaldo.zip
Doin that seems to fix a lot of peoples random problems like that.