What the?

Okay, my step-dad got a new desktop and until i found out it was crappy i was shocked to see what was on it1
It an IBM with a 15" screen and has a "Intel Pentium 4" sticker and a "Microsoft Windows Xp" sticker on it. This comp is from my step-dads friend and i swear using XP 6 months ago on it. I did Diagnostics and it came up with "126 Mb Ram" "Intel Pentium 3" What the????

I'm not completely sure what your question is, but you can stick a P4 sticker on a computer with a P3 inside (though it is sacrilege). 126/127MB of RAM is usually due to video BIOS shadowing turned on in the BIOS. It should be off, but it won't do anything bad.