>just wanted to know if this machine is capable for this type of stuff
CPU and RAM wise it's alright. Eg doing icons or diagrams (SVGs with low node counts in general) is certainly possible. The same goes for simple image manipulation/creation (eg web or interface graphics). I did that kind of thing with a 500mhz machine with 256mb RAM for quite a while and the only noticeable issue was the startup time of programs.
If you attach a monitor at the dsub/vga port you can pretty much do all typical web dev things. Running Apache on the same machine with Typo3 won't be much fun, tho. It does work, but it's really painful.
Without a separate screen it's somewhat cramped. Eclipse for example can be used in 800x480 (
screenie). And Inkscape should also usable if you use a 3 button mouse (with wheel), disable some things such as scrollbars (you can pan with MMB), and if you learn the tool shortcuts.
The tool shortcuts are actually quite easy to remember. Those which are shown in the tooltips are the internationalized hard to remember shortcuts. The alternative shortcuts are easier:
Select (you can also use space to toggle over to the select tool... hit it again to switch back to the previously used tool)
Node (node modifiers:
Shift+
Corner/
Smooth/s
Ymmetric)
t
Weak
Zoom (you don't need this one... it's faster to zoom with the mouse wheel)
Rectangle
3d bo
xes
Ellipse
* (star)
sp
Iral
Pen
Bezier
Calligrapy
paint b
Ucket
Text
c
Onnect
Gradient
Dropper