I want to just be able to connect it to my TV and watch Youtube and Hulu.<p>Already tried (and didn't like):
Ubuntu 11.10 (open to other version)
Chromium
I have fedora 16 running on a similiar laptop (dell inspiron 8600). On a laptop like that, i think the graphics card is what will make the most noticable difference. Hopefully you have an intel or ati card with supported drivers. Nvidia let their drivers for that era go "legacy" and nouveau (the open nvidia driver) might be lacking even basic hardware acceleration.<p>Sadly, Windows XP might actually be your best bet if have an nvidia card and you want to do things with flash and expect it to be somewhat performant.
I like running Linux Mint LXDE edition on my Atom/ION machine with a 1G of memory. It's based on Ubuntu (I think the latest version is based on 11.04), but uses LXDE, which is the lightest "full" UI that I could find. I put Chrome on it and it works fairly well - not exactly snappy, but sufficient for Web browsing.<p>The plus side is that all the software that's in Ubuntu is still available (from the repositories), which might not be the case with some other minimalistic distros.
TinyCore if you want minimal and hard work (<a href="http://distro.ibiblio.org/tinycorelinux/welcome.html" rel="nofollow">http://distro.ibiblio.org/tinycorelinux/welcome.html</a>) {Damn Small Linux is dead. TinyCore is sort of the result.}<p>Puppy if you want, well, I dunno, but it has a loyal userbase (<a href="http://puppylinux.org/main/Overview%20and%20Getting%20Started.htm" rel="nofollow">http://puppylinux.org/main/Overview%20and%20Getting%20Starte...</a>)<p>or there are a gajillion "minimal" versions of Ubuntu. CrunchBang is one, but there are many more.
To be honest a minimal version of windows 7 will run better than xp on a system that old. I mean, if you just want to setup something with the least amount of hassle.<p>Get a good video card though.
I have windows xp running on a 7 year old PC that was low end at the time. Hulu and Youtube do pretty well on it but netflix chokes. If I were going to set it up again I'd probably go with Ubuntu.