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I expect to be able to do quite a bit more with it.
For five years, I've been working on a 1.25 Powerbook G4 with 512 Mb of RAM. It's been running 10.3.9 the whole time. And frankly, it's only started feeling obsolete in the past 6 months.
I could tear into it and put in more RAM, and even try Tiger on it. But I'd rather leave well enough alone, and just get a second laptop--especially considering my impending year overseas.