How old is this system?
Based on what I'm reading here you are the bare minimum. I don't know what type of recording you want to get into, but that CPU will get eaten up quickly if you have only a few tasks working in your DAW. I can tell you from experience that just running a couple of MIDI tracks chews up the CPU quick.
As for the RAM. I suggest upping that to at least 2 gigs. RAM is so cheap right now it's a no-brainer. (As long as your MOBO can handle it)
Sound Blaster> Again it will all depend on what you want to record/mix. I don't want to speak for everyone else, but I don think some will say you definitely need to upgrade this.
Do you plan on using mics? If so you should be looking into some preamps.