Welcome benny. I'm also new here ;D

If I was you, I'd try booting it with either Damn Small Linux or Xubuntu. Both are lightweight and should be okay to run on your system. Check the links below:

http://www.damnsmalllinux.org/

http://www.xubuntu.org/

My favourites would have to be (in no particular order):

Open Office
GIMP
Kdenlive
Terminal (does it count?)
AWN
Conky
Firefox (well, Shiretoko - the 3.5 BETA)

Adding mine too ;)

Current:

Ubuntu Jaunty
AMD Sempron 3500+ (<- Awful Processor)
3.5GB DDRII
160GB SATA

Full specs (slightly outdated) here:

http://egraphics.free-site-host.com/hardinfo_report.txt

Here's mine:

Need a new wallpaper though...