Yeah that is such a lie I had 1GB in my Macbook for the first few month's I owned the Machine and there was no way I could have 10-15 apps open I remember trying to open photoshop and use it with iTunes, Mail and Safari open and it could not be done without huge slow downs it became unworkable when working with large files, you need ram and when switching between applications especially CS3 you want it to be fast Especially If you want to move large files between many applications.
I'm sorry about your macbook. Must suck. But I'm not lying. This video right here on Macrumors was done on my system with 1Gb of RAM. Granted it's not running some of my CS3 apps, but there's 12 apps running right there plus SnapzPro running on top of it to record it all.