Desklamp model.
Also seen performance on a Pismo laptop and a later model
MS Suite and any other office apps will not be a problem. In fact, on a new edition machine, you'll likely see no difference at all in performance from the VPC to an actual PC.
I suggest you rev back your windows version. Win2k should be good. Easier to shut off all the eye candy crap in the OS.
Where VPC falls down is in video subsystem stuff...so anything with high-end graphic needs will not be a pleasant experience (ie...games).