Um, I would put xp on it and sell it on
ebay, I had a few old comaq something or anothers, 64 mb ram, 400 mhz processors, 6gb hard drive, cdrom, ect... i had one complete and working with xp on it, then i had two left, one not working with some parts, and one working with no parts, The good one sold for almost 300$(no joke), the junkers(incomplete, notworking) fsold for 80$/per!
There is actually quite a market for old lappys like that, especially if the battery still works, and it has the charger.
If you want to keep it, i would:
1. put itunes on it.
2. attatch it to the wall in your living room.
3. put itunes on it.
4. put itunes on your main computer.
5. If you have a network, share you itunes music from you main comp.
6. access it from the lappy
7. Viola--you haev a nifty jukebox for partys and stuff.
(i did this too, with an old IBM with similar stats)
And as far as these dudes offering you 10-30$ i would headbutt them, scince now headbutting something sounds awfully fun..