Yeah, I'm guessing it's the RAM. 3gig sounds like an odd number for DDR2 and it's most like not running in dual-channel, because he's missing a stick of RAM. I'd pull out one of those 1 gig memory sticks to see if the game runs smoother. He has to make sure he's keeping the other 2 gig paired.
I ran Oblivion with a Dual-Core Pentium E6300 (2.83 GHZ), 8 gigs of DDR2 RAM and a GTS 250 with 512MB.






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