To increase the PC Speed
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First back up all your data (including drivers and setups etc) in some external device preferably a USB or external hard drive.

For installing Windows (lets say XP), bring a CD from market, insert it in your CD Rom and restart the PC

Now when you restart, it will ask you to press a key to install windows, press any key

Then it will take you to a set up. The most important part in the set up is the space allocation for each drive. As this a complex process for newbie, do have a look at the following links before installing

Windows XP Professional Install Guide Page 1
TweakHound - The Right Way To Install Windows XP
How to Install Windows XP
YouTube - ‪How to Format and Reinstall Windows xp‬‏

Once you are done with installing a new windows, then start installing Antivirus. I would prefer Kaspersky's latest version. You have to download the keys as well to get out of the trial mode so if you cant download, then purchase a CD of the pirated one.. (or buy a genuine copy if you can afford).

After installing antivirus, then you may install programs of your choice. For browsing, i would advice you to use Google Chrome as it is very light and for a 256MB Ram PC, it would do fine. Besides, you can always increase your RAM to 512MB or 1GB