It depends...
For watching movies (not HD, HD sucks), listening music, browsing internet and remote desktop it is enough. I ocasionaly process some photos and do some programming (arduino). Only game I tried was OpenTTD, it was running fine. Keyboard is fine for typing, but probably it would be pain in the ass if used for lot of typing.
It was usable before upgrade, but I definitely recomend upgrading RAM for Win7 and screen for any OS. I appreciate bigger screen when I need to connect to remote desktop (citrix) to do bit of working.