Just snag some more RAM and, uh, "obtain" a copy of Windows 7. So long as you disable most of the graphical interface stuff like Glass or Aero and a few other things, you should be able to make it pretty usable.
I'm in the same camp. My EEE is almost the same specs as your MSI and it still has XP on it. **** loses support in another month so I need to make the switch to 7. I had 7 on an identical netbook that I eventually crashed the harddrive on, and it ran good for awhile. Like I said though, gotta disable a lot of stuff to keep the resource usage down.
Jlausen: "Think of what 90% of people do on PCP.
They rip their skin off and rape anything in sight. Basically a Shel Silverstein poem."
XBL - xStonedCrow