Well I formatted the hard drive with parted on the current Knoppix live CD, then installed said live CD to the harddrive. IT WORKS GREAT! Major software it comes with:
-OpenOffice (MS Office)
-GiMP (Photoshop)
-Wine (Runs Windows apps. I've already run Solitaire and Notepad)
- And a bunch of smaller indespensable tools and apps
And of course it's possible to downlaod and install programs from source code too.
It's running pretty good fro a PC I pieced together this morning.
Here's the specs I'm running:
P2 300mhz
196 MB RAM
32x CD Rom drive (looks like excrement because it's missing the front cover)
floppy drive (same)
13 GB HD (2 partitions: hda1-file system 12gb hda2-swap 700mb)
No-name PCI Soundblaster 16 compatible
Netgear gigabit ethernet adapter
Of course right now, since I still haven't declared it "complete" by my standards, the harddrive and CD-ROM drive are sitting on top of the drive chassis.
I haven't tried PuppyLinux. But you could try D.S.Linux (note the "."s, to differentiate it from DSlinux for the DS

). DSLinux is only a 50MB download, so you can install it on a USB drive. However it relies a bit on the shell to configure some things. But it works on my PC in full color with sound and broadband Internet access right out off the CD without any further tweaking.
You may want to try a more user-friendly version of Linux to start of with, unless you want to try and figure things out for yourself. I started off with Ubuntu Linux, which was pretty good, it's got decent software and a couple cute games with it, but it was a little too user-friendly for my tastes, if you know what I mean.
I recommend Slax, a Live CD distribution of Slackware. It comes ready to go with word processing, internet access, and other goodies. Plus it's really easy to install FireFox on it.
Look for a distribution that uses the K Window Environment, you can change settings to make it look and behave almost exactly like Windows, with its Redmond theme. Plus it's quick to start up on most machines, and the interface is clean. FluxBox is another option, but it's watered down a bit for low-memory systems. Slax includes both and lets you choose which one you want to use after login.
<a href="
http://www.tuxfiles.org/linuxhelp/linux ... .html">The humble Linux cheat sheet</a> helps me quite a bit when I have to use the shell, and I'm currently working on a table which lists common commands and their DOS equivelants.
<a href="
http://www.tuxfiles.org/linuxhelp/softi ... html">This page has a tutorial on how to install programs from source code</a>.