For Question 1:
True Life will be those glossy screens. They Are reflective, and
these kind of screens are best to view videos, games as the color
is more vibrant, but do take note that you will strain your eyes
and your eyes will get tired more easily due to the colors. The
colors that you see on these kind of screens might vary slightly
frmo the colors that u see on print. Reasons above. So if u are
doing more of designing, use a matt screen what u see is what u
get.
For Question 2, Graphics card do not need Ram, unless your graphics
card uses your ram for it's graphics processing.
Xp is able to support the graphics card.
Your Ram is more than enough for xp and this system is somehow or
another, quite "godly" in xp. Lag Free^^
