What year is your machine? What processor? I’m assuming it’s a 2.26GHz Core 2 Duo, but not sure.
If i max the memory out is it actually going to help?
Yes significantly. It won’t make your machine faster, but it will stop it slowing down all the time.
Thinking about it, if i downgrade the OS would that make things faster?
Hard to say. I’ve seen lots of benchmarks of a machines speed on Snow Leopard Vs Lion, and it seems that anything with a Core 2 Duo processor or older is very marginally faster (we are talking maybe 1% overall though) on Snow Leopard, and anything with a newer processor is marginally (again a very small number) faster on Lion. Personally, I don’t think it makes enough of a difference, and though I was reluctant at first, I think the benefits of Lion just about outweigh the disadvantages now it’s a bit more mature and stable.
Got to be said though, if your machine is a C2D machine, the newer i5 and i7 machines are not just a bit faster, but a ridiculous amount faster. Massively so in fact, worth considering selling your machine on and buying a newer one at a decent price certainly. The processor makes a BIG difference of course.