<font size="2">The current memory installed in my pc is 2x 256Mb - PC2700</font> - <font size="2">does this make sense?</font></p> <font size="2">But what I want to know is would 2x 512Mb - PC2100 be compatible? And if so, would I see a big increase in my PC's performance?</font></p>
Yes it would be compatible and you would see a performance increase (though how noticeable depends on what you use your PC for). More memory is always better than faster memory.
PHEW! Thanks for that mate. Went in blind for some memory on ebay, not knowing the varying types. Only today have I found out about differing types and compatability.