I checked its Intel Ark page, it's indeed a 64-bit machine, so you could run 64-bit Linux/*BSD fine. There's a sightly increase in the memory usage though, but it's worth the trouble if you want some better support.
As for operating systems:
>Windows XP is arguably the only Windows-based that will do well, it's great for gaming but it should stay away from the Internet. Even if Windows 10 can run better than 7, it's kinda choppy in low end system, at least, it was kind of a pain on my old AMD C-50, but it should do okay if you want to use something supported.
>For Linux, Lubuntu, Debian with XFCE/LXDE or Arch Linux with XFCE/LXDE were my choices in low end systems, going from the easiest one to the "hardest" one. For Debian, do a minimal install with the netinstall disk and install the desktop environment through apt with the --no-install-recommends flag. Arch stopped supporting i386, so if you want to use the 32-bit, you'll need the Arch Linux x86 or whatever it's called nowadays, plus compiling stuff from the AUR will take ages, so keep an eye on binary packages (usually with a -bin in their names).
>For something less mainstream, FreeBSD is pretty good and has a Linux compatibility layer, OpenBSD is more server/security-oriented, but it lacks this layer. Do not fall for the "user-friendly *BSD" meme, just use the upstream stuff and configure it yourself if you care about stability.
>For really obscure stuff, Haiku is extremely light, but I don't know if it'll work well on your hardware. And it has a package manager!
EDIT: For Linux and BSD, you can cut down the usage even further by going pure WM instead of using a DE. I also forgot to add: The software that you use will probably influence more than the DE/WM you are running.
