With a Win 98SE, Duron 900MHz, 512MB system, saves took around 1.5 to 2 minutes to load, as best I recall (upgrading to a Duron 1.3GHz processor didn't make a significant difference). IIRC, people have reported load times from half a minute to 5 or 6 minutes.
I'd suggest running a scandisk and then defragmenting your hard drive. Shutting down all non-essential programs before starting the game should help. Windows XP is probably taking up a fair chunk of your memory (especially if your video is integrated into the motherboard and using system memory), though I wouldn't necessarily upgrade unless you find a good deal or are having problems in other programs.
Part of the reason for the load time (and save file size) is that the game saves
everything. You can leave things in chests or on the ground wherever you want, rearrange some furniture, etc and everything will remain as you put it when you return.
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