Puzzling. Gaussian Blur is not such a resource hungry filter like the radial blur. Maybe you should try resizing your image. A large image with a rez of 2048*1536 might, (just might) cause a system hangup. Otherwise, dunno what to say.
Till about six months ago, I used to run Photoshop on a 192 MB RAM system (100Mhz) and worked fine for me..
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