|Also note that while XP will run reasonably on 1GB RAM, it does run considerably better on 2GB RAM so if you have that option on your system, seriously consider upgrading it if you plan on keeping it much longer.|
A clean install with JUST the Dell drivers (newest version) will be peppier feeling than one with all of their preinstalled software that will be on their disk. Obviously I agree with riider on this.
Do not spend too much time or money on this machine because it is really outdated. If you plan on doing much more than email, shopping, light office work at home, etc. you should look towards a much newer machine if funds will be available in the near future.
You have to be a little bit crazy to keep you from going insane.