The Acer 1360 has an out of the box 1.8 gHz processor, 512MB of RAM and a maximum 60GB hard drive.
Given this information, both of your friends are correct.
The good news, your processor (the 1.8gHz part) will work for what you want to do. This is the important part because you cannot reasonably upgrade that.
The bad news, your RAM (memory) is too low and your hard drive is too small for what you want to to... Back to the good news, both are upgradable, and fairly unexpensive to do so.
For the hard drive, you will want to get one as big as you can afford. I would recommend at least 100GB...which you can buy for about $40. With current technology, the "best bang for your buck" will be a 1TB drive for about $80. Its 10x's the storage of a 100GM for only 2x's the price. Anything above that (for the time being) is a waste of money, you can get 2 1TB drives for less than a 2TB drive. I buy most of my computer parts from either
www.tigerdirect.com or
www.pricewatch.com
RAM is slightly more confusing. The Aspire 1360 has 2 slots (places inside your computer) that you can put memory into, 1 of them is currently empty, the other has a 512 MB card in it. Capture NX 4 Requires 768 MB, and recommends 1GB. This gives you a few options depending on how much you want to spend. You can buy a 256MB card to add for about $20. This will bring you up to the minimum requirements. To get to the recommended level, you will need to buy a 512MB card, about $25. You can make yourself really happy and buy a 1GB card and have plenty of processing power for $50.... or you can max you computer out by buying 2 1GB cards for $100 and removing your old 512MB. Personally, I'd recommend buying the 1GB card and being done with it.
You can probably do the installation of the RAM yourself, you can google "Installing RAM in Acer Aspire" and you will find plenty of tutorials showing you how. It isn't complicated, you plug it in, turn on your computer, and you are done. If you do plan on doing it yourself, you MUST buy the correct type of RAM as there are different kinds out there for different computers, you need "200-pin SODIMM, DDR PC2700" memory for that computer.
Now that all of that was dumped in your lap..... The extra bad news. I'm guessing you bought your computer in 2006 or shortly there after. The life expectancy of a laptop is about 5 years.... you are doing a Riverdance on that line. Anything after 5 years is working on borrowed time. If I were you, if it is in your budget, I would strongly encourage you to look into buying a new laptop. You can buy one that will do what you need it to for under $400, and you can buy a pretty nice one for $600. You will still want to also buy the external hard drive to store your photos, but you can rest fairly assured that you won't run into any major computer problems in the near future. You can always keep the old computer in the bathroom for some quality Internet browsing until it dies for good.