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if you streamlined the install to avoid running 50 programs you don't need or want, i would guess you could be up and running without much problem. as with anything, what do you plan to do once you have everything installed?
That's fine for a standard desktop or server installation. The CPU isn't heavily used for most tasks - the bottleneck is memory. The GNOME and KDE desktops need a minimum of 128MB RAM to work comfortably, so you've got a comfortable margin.
I am running on a 700mhz, 256 SDRam system and I experience little to no system hangs or resource problems at all. I think you should be fine running with that =)
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