I used to have that same system. I maxed out the ram (to 128megs i think) and installed a new harddrive, video card, and network card. It ran a lot faster, but still, you couldn't do anything with it. The CPU is so slow, and you can't load OSX on it.
In the end, I gave it away. A co-worker loaded some old Mac educational games on it and gave it to his kid.