You do not mention what desktop you use. The computer I use the most is a 366MHz Thinkpad with 192MB RAM, which is a pretty similar system to what you have, and I have a pretty responsive and usable desktop. But then again, I don't use KDE or Gnome - I switch between OpenBox and XFCE4, with some Fluxbox usage thrown in every now and again to try out new themes.
You may also want to try a fully preempted kernel as it improves desktop response a lot.
Last edited by hw-tph; 05-21-2004 at 06:24 PM.