The entire thing is so small, it loads into, and runs from RAM memory (which, as you know, is the fastest component of any machine). Or, you could try what I run myself Puppy Linux.
Incredibly popular, and more and more former XP users are going that route, especially if they can't afford to upgrade their machines.Linux is very good on older hardware. You could try the two top distros Ubuntu and Linux Mint.
I'll agree whole-heartedly with TerryNet go with Linux.