I agree with Iridflare,
That video format makes most computers work very hard, Personally I would add a llittle ram, (just to make it run a little smoother) but you should be able to do it as it is, it may not be perfect, a little jumpy in places, but if you can live with that its ok.
Basically you have to suck it and see, if its ok for you then thats fine, if not go the ram and extra hard d rive as a scratch disk, that will certainly help with out breaking the bank.
RR