I'm aware of how early OS X performed. I worked my way through Mac OS before finally choosing Jaguar as the first OS X I used every day. It was running on 384MB of RAM which wasn't bad for 10.2 back then. Glad you had better luck with yours than I had with mine. Maybe I'll dig mine out of the bag and xpostfacto Tiger on it. I'm sure you recall how buggy and slow 10.2 was, maybe I'd have better luck with Tiger.
In the grand scheme of things, Jaguar was actually the "smoothest" OS on it - but for public-internet use, running (what was then the latest) OS was more secure. Tiger ran passably for what the machine's job was. If you want to play with an old machine just to play with an old machine, I'd put 10.2 on it. If you want to use it for "serious internet surfing", then 10.4 with TenFourFox is probably the best bet.