Lag

I think you got jre 6... thats the reason you get the "error"
Also could you post your computer specs?

Your ram and cpu seem to be fine... (Although your cpu is a little bit weak, but it should handle minecraft)
What graphics card do you got?
Do you got jre6 or jre7?

Have you checked if there are maybe driver updates available for your graphics card?
I think you might be lagging because your graphics card is just a chipset thing...

Try to use optifine

Your CPU and RAM are fine. The errors comes because you are using a JRE running on the x86 architecture. Specify that you want JDK or JRE x64 if you don't want that error. Not that with your chipset, you most likely won't be using far render at all.

I searched up your computer and I'm guessing it's using Intel HD Graphics 200 with 128MB dedicated RAM. Since this is an older laptop, this type of graphics processing power won't do so well with Minecraft. Therefore, tiny render is killing your card, and far is nearly unsupportable.

Intel HD Graphics 3000 also sucks with Minecraft, but the Ivy Bridge processors with HD 4000 are reportedly doing much better.
If you ever get a desktop, do not use an Intel Chipset for graphics. Get ATI or Nvidia cards for higher performance.