huge db records becomes slow?

Hello everyone
Sorry I am a newbie here but i am having trouble with my database and hope someone can help me.

I have a Linux Dedicated server at Godaddy.com
with Core 2 Duo - 2.13 GHz and 2GB of RAM.
latest MySQL and phpMyAdmin

Now want to make a site that has yellowpages and whitepages two different databases of course. Anyway in my computer i have 200 + million records that i want to add in the database. Something like yellowpages.com / superpages.com

Right now i have added 2.3 million records and the site takes TOOO long to search. and because some the php is made where it needs some info from the db for the other pages it does not load at all, at times.

I just wanted to know if I need a better server? will that help, Do i need to install memcache, lighttpd to cache and such? Better architecture, new host?, different way of programing the php? I am using: [URL]http://phpmydirectory.com/[/URL] i have asked them but they never had someone put millions of records like me.
What is wrong? and can it be fixed without spending tens and thousands of dollars?

Because I am not good with servers and such. and you know exactly how to fix it and need to install or do anything please let me know i would pay you. I am not intending in spending a lot of money but please someone help me in figuring out why and how to fix this.

Thanks

  • Nik

p.s sorry for my bad english.

This is a forum on db-optimization. I do not see how I can help you if you do not supply any info.

what kind of information do you need and I will give it to you?

table lay-out, slow queries, config, status vars, etc.