Agreed, but it's easier to just leave it be then it is to mod it. I would do it, if I had it, but since this guy's parents don't want him building a pc, they probably wouldn't favor replacing memory.
What he said. For both, like in your later comment, go for choice 2, because the cpu is faster and stronger. (6 core, 3.5Ghz) Also, I know this is supposed to look cool, but you don't need the cpu cooler. The CPU comes with one for you.
The mobo is top-of-the-line, or at least pretty close. I also stuck in a Video Card, despite the integrated graphics. And finally, a sound card, in case the mobo didn't have one (I think it did, though)