An additional point
I use IPCOP at home with a Novell 4.11 server and several Windows clients. I also have dialup. When I first installed the system I had an internal modem (hardware controller, plug and play), I couldn't get the modem to work. Once I switched to an external modem, the system started working pretty much flawlessly. It seems the plug and play modems will sometimes want to use a com port above 4 and IPCop has trouble with that unless the configuration is modified.
Using the web cache, when loading pages that are already in the cache, it feels like broadband or better. Obviously, that's only if the page has been cached already. My IPCop machine has a 166MHz Pentium, 64MB ram, and a 8 GB hd. I love it, and highly recommend it to anyone that will listen.