I've just installed Windows 7 beta on my Compaq M2235 with these specs:

Celeron M 1.5ghz
768MB RAM
40GB HDD (split into 2 partitions)
128MB shared video memory
DVD combo drive

Now, these are the specs we normally associate with typing jobs and spreadsheets, but Windows 7 is currently running well on this thing unlike the Vista incident. As of this moment, it runs much faster than XP on this same computer even compared to a fresh installation of XP. It doesn't have Aero though, but that's not much to rant about since the problem's just the graphics driver of the Intel 915GM, which they programmed not to run Aero although most speculate it can. Now I can believe that Windows 7 will run on Pentium III's. Installation is uncomparable. Period.

Now I have a proper replacement for my ageing XP.