Now, any ideas on:
a) What to usefully do with it (apart from the obvious, like give it away or cannibalise it), and
b) How to upgrade it to do so.
I am not familiar with Linux, but wouldn't mind giving it a go to configure it. It doesn't have a USB port, but I do have a parralel port to USB cable and a USB DVD reader / writer. At the moment, it only has Windows 3.x loaded on it and I'm not sure it has the drivers to enable it to use the DVD reader.
I was thinking of maybe using it as a seerver to host a website - but not really sure about what that might entail.
I geuss it would have to run some form of Windows and then use Apache.