first, we need way more info about what you want the PC to do. XP/MCE will install on a p2 266, but it runs like dookie. I never us less than 512 of RAM ina n XP machine. MCE is just a custom version of windows XP, so if you stick with those system req's you'll be ok. except for the video card. you need a direct x 9 vid card. and you need a hardware based encoding card.