RAM Vs Processor - Who Wins

Hows everybody doing. I am hosting a small network of sites (between 5-10) on a dedicated server with HostGator. I have the Standard package which gives me 1024mb as far as RAM and a Dual-Core 3040 Xeon (Conroe) as a processor goes.

My sites run extremely slow on the front end and back end. The sites are blogs which you probably know are php heavy. Not to mention a few of the sites get a decent amount of traffic (Alexa rankings of around 50K). One of the less popular sites with not as much traffic is www(dot)abnormalstyle(dot)com ...You can see how slow this site loads, its on the same server as the other sites, just using a different IP account...

I am looking to upgrade my server. When i talked to HostGator support i got the answer i would expect. "Upgrade to the next package, which is more money".

I am wondering if i would advantage from just upgrading my ram, or going with a processor first. The thing is, if i want to get the next processor i have to defiantly go with the next HostGator package, due to the fact they cant just add a new processor. They can however add more Ram.

Below are some options, if you have the time feel free to leave your comments and pick one of the options below which you feel would best suit the network of Wordpress blog sites i am using.

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Option 1 - Just upgrade RAM. There is no sense in going from a Dual-Core 3040 Xeon (Conroe) processor to just a Quad-Core 3210 Xeon (Kentsfield) processor, regardless of the ram, it will not make a major difference. ITS ALL ABOUT RAM!

Option 2 - Go for the next HostGator package which offers 4096mb Ram wise and Quad-Core 3210 Xeon (Kentsfield) processor wise. The Processor upgrade along with the RAM upgrade will be MUCH BETTER then just the ram upgrade itself in option 1.