Hey!
Don't feel bad mate :)
Me too feel that having the money to invest in a newer pc would be great, but
I am happy that I actually have a laptop to use that isn't broken. Life is
already expensive A LOT in many ways, computers are the last of our worries
most of the time.
HAVING said that, I will also add that you actually have a nice machine. It's
a small one (which i dislike, glad that mine is big) but it has what you need
to run GNU/Linux. Of course that would depend on your personal needs. What do
you do with your computer?
If you are geeky and want to go with command line only OS, you will have no
performance issues. If you just want to go with the "regular" use, you just
have to use lighter applications. As a reference I would suggest you took a
look at DSL (damn small linux) since it is intended for older pcs. You will
get an idea of what you can do with little hardware.
Since your main problem is the installation of Trisquel (freedom issues make
it harder to use other distros, though you could use one and take off the
blobs and such), you could try a mini install and remove stuff you don't
need.
I ADVISE AGAINST USING TAPE TO GET AND HDD IN THE BACK OF THE MONITOR. You
will most likely screw the monitor in no time (if not the HDD also). The
internal work of the HDD will affect the monitor in little time and the
weight will damage the connectors. So, don't do that. The table is a nice
place to put the HDD.
I really hope you can make the best out of it, because GNU/Linux was always a
friend of modest hardware machines, and an Eee should be enough. If you were
with Windows it was a game over even before the game begun of course xD lol.
BUt with linux kernel (which is still modest) and the appropriate free
software choices, you can make a great use of it. For reference give a read
at DSL (damn small linux) and Vector Linux. You can take some ideas from them
and apply it with free software :)