I recommend you to try some lower end desktop environment. xfce or lxde. 
Install with "sudo apt-get install xubuntu-desktop" or "sudo apt-get 
lubuntu-desktop". Also try removing memory hungry applications with their 
lighter alternatives.

I recommend to stay with newer ubuntu because you will have newer kernel as 
well as newer apps.

Also in 11.04 if you want to run gnome or gnome(without compiz) you can 
choose it as a session when you login.

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