You shouldn't have any problems there. Only thing I would recommend looking in to is support for your graphics card as many distros have some problems with the ATI drivers.
If you really want some recommendations to try out, I'd look in to SimplyMepis as a good first look at what your machine can do with it. It's a liveCD version that, if you like it and it supports all your hardware, can do an HDD installation right from the booted live environment.
If you're looking for something a bit lighter and more customized, take a look at Gentoo. I would only recommend this if you're familiar with your machine, comfortable with compiling, and willing to invest some time in getting the system up and running. The stage3 install is the easiest way to go as everything you need to get the system up and running is provided. Gentoo is NOT a good choice for a Linux newbie unless you're seriously looking to learn the nuts and bolts of Linux. If you really want to learn this sort of thing, do a stage2 install of Gentoo. It'll be an education.