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Is this good enough to install Ubuntu Server edition and install at least the following and have this machine serve and a personal development server:
Apache Web Server
MySQL and PostGreSQL
SSH Server
Tomcat and Apache Axis2 Server
Additionally, I know that it is not a super fast machine for kernel development but what are your views about using it to play with Kernel and System programming?
You'll be much, much happier if you get a larger harddrive. Here's a 400G SATA drive for $40 : geeks.com/details.asp?invtid=ST3400620NS-NDW-NP&cat=HDD . Ask your friends-- some people have 80G drives sitting around, and will give them away for free.
I have about the same specs as you (I have an AMD Athlon XP) and it runs just fine with Apache, SSH and MySQL. You should be fine if only you are going to be connecting. You'll have problems if a lot of people are on it.
It is adequate. A virtual machine with similar specs is a lower-cost option that may require no new hardware. (Keep in mind that this low-spec PC may cost you $6-10/month in power if it's left on 24x7.)
AJ, that's perfect! I've run all kinds of Linux and Windows virtual machines on a vanilla Core 2 Duo Macbook. Low budget options: VirtualBox is free for personal use, and students can get VMware Fusion for $40. Even if you have only 2GB of RAM, a 512MB Ubuntu Server VM won't slow you down. (and if you have less than 2GB, you can upgrade your MacBook to 2GB for next to nothing...)
It will be just fine, web dev is not intensive, only serving in volume is.
I'd add another 512 ram (or as much as you can your hands on) if you get the chance, for a more comfortable experience.
