It works. I use it for old games not to work on. I have another old Toshiba desktop that needs some rework but it was working well In 2002 for the listed requirements:
* Email
* Word Processing
* Spreadsheets
* Databases
* Web surfing
* Audio/video playback
* IM

If I ever get enough time to refit it with a new CDrom drive, I would need to add a new requirement to your list; Anti-virus (Avast?)