You can use it for every day stuff, such as email checking and office work, not to mention very light gaming, nothing like Crysis or anything of that type, so no, it isn't quite obsolete yet, Windows 7 will run on it regardless, and with pretty good speed, all you need to do is upgrade the memory to the maximum it will take, and add a PCI graphics card to get Windows Aero, and its good for another 5 or 6 years.
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