Glad to hear it's improved the performance (and stability!) We should never have shipped the bundles without a setting of at least 256MB, with 512MB being recommended. Appologies for that mistake.
The CIFS protocol is quite CPU intensive at the moment, so yes a server with more powerful CPU will probably help more than more memory, but if you have a 1GB to spare then it will help some. We will be working on a round of performance improvements for CIFS in a later release.
Thanks,
Kevin