I agree with Doc and the rest. The config should be ok. You should also be able to locate the minimum specs for running Linux at the company websites that distribute them (RedHat, Mandrake, etc.).

The Distributions I recommend are:

Mandrake (easiest for those new to Linux)
Red Hat (most suited for corporations, not quite as easy to use as Mandrake).

Both above have a graphical desktop.

Good luck,

SalmonFisher