I have a macbook with snow leopard. I want to do some basic editing using final cut pro but everything is too slow and I don't have enough storage memory. I can't afford a macbook pro so what are my options

It would help to know which one of the 9 different models of MacBook you have. To see which model you have go to the Apple in the upper left corner and select About This Mac, then click on More Info. When System Profiler comes up check the Model Identifier and post it back here.

OK, there's two different versions of the 5,2 the 2.0Ghz and the 2.13Ghz model.

The model 5,2 (Early 2009, 2.0GHz Model Only) can use 6gb of 200 pin 667mhz PC2-5300 RAMThe model 5,2 (Mid 2009, 2.13GHz Model Only) can use 6gb of 200 pin 800mhz PC2-6400 RAM

These are good online stores for Mac compatible RAM

OWC http://eshop.macsales.com/shop/memory/MacBook/DDR2/ - They offer Mac tested RAM at very good prices.

Crucial Memory http://www.crucial.com/ - good place to buy RAM from all over the world. They also have an excellent memory selector that allows you to choose memory based on your computer's model

Data Memory Systems http://www.datamemorysystems.com/apple-memory.asp - another good, cheap place to buying RAM if you live in the U.S.

Here are instructions on replacing RAM in a MacBook with a removable battery. http://homeoffice.consumerelectronicsnet.com/articles/viewarticle.jsp?id=44404

If you don’t have the tools to open up the MacBook OWC has a set for $5.
http://eshop.macsales.com/item/OWC/TOOLKITMHD/

Changing the RAM won't affect any information. 6gb vs. 4gb wouldn't be that noticeable now but if you can afford it it would better to max it out now rather than need it later.

I can't help you with the upgrade to Lion or Mountain Lion. I'm staying with Snow Leopard since there's nothing in Lion that I really need and I'd lose my Power PC programs.

The 5gb of RAM with one 4gb and one 1gb will work fine. Having a matched pair of 2gb will only gain 3% to 5% increase in speed over a single 4gb. You can replace the 1gb with a 2gb later.