Best Way To Upgrade Old Computer?

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http://www.linuxforums.org – Besides my normal machine, I have an old Micron Millennia MXE sitting around, and I was wondering what would be the best way to turn this old 128mg of ram PII (w/ 12GB Hard drive) into a fast, light-weight linux machine? On a tight budget? Right now, I have Vector on there, and it's pretty slow. I'd use it for Internet, music, videos... Maybe a game or two... That's about it. I'd want compiz to work easily without lag... Any suggestions on what to get? And where to get it? Also, if you know of a place that sells used or refurbished computers for REAL cheap, please let me know... I will have some extra cash around christmas and would love to do some tinkering with a couple of things. :) (HowTos)