I agree with GimmeSlack... if you install Jaguar (which is contemporary with that Mac), alongside Jaguar era software, it should run fairly quickly (because it has rather a lot of RAM and a newer HD). This is loosely true for Tiger, too, although Tiger has more services running in the background for Spotlight and Dashboard and so on that seem to make this somewhat more questionable.
In general, OS X has gotten faster on a given computer, given adequate RAM and HD space, over time -- e.g. Panther should actually be faster than Jaguar on your computer. But that is decidedly not true for most applications.
That computer is on the slower end of the computers released with Panther, and certainly slower by a factor of almost three than the slowest computer available when Tiger was released. And those computers were the benchmark app developers were using to determine if their apps were reasonably resource-wise.
So you can make it work reasonably well with applications written in the Tiger or Panther era, but it is not going to be as fast as a machine that was contemporary with those OS versions without a processor upgrade. There are processor upgrades available, though, if that's what you want.
Here would be my suggestions, though, if you want to continue on with this:
1) If you are using Tiger, disable Dashboard, consider disabling Spotlight, shut down any servers etc that you don't want/need, disable FUS, etc. Avoid multitasking programs that are not so good about the amount of system resources that they use while not in focus (MS Office is a known culprit). Mitthrawnuruodo has a thread somewhere about related tips for speeding up Tiger up, although the computer he was using was a little different (much faster processor but less RAM and HD space, IIRC).
2) If you are using Panther, or even for Tiger, try to find relatively older versions of apps that still work on the given OS and meet your needs. They will probably run faster than the latest app revisions.