the bigger issue here seems to be the RAM
I have a slightly better system that I'm using for my windows tests which works (sorta):
Intel Core 2 Duo L7500 @ 1.60GHz
2GB DDR2(?) ram
Intel Mobile 965GME
Windows Vista Ultimate 32bit
graphic driver from Lenovo (branded version of latest one available from intel)
so the only real difference here is a slightly better CPU and twice the ram
however, it should be noted that the intel graphics driver causes *heavy* issues for me.
e.g. you have to turn graphic details rather low and even then the driver doesn't seem to free buffers properly, so it leaks ~1.5MB per second (couldn't reproduce it on any other system so far).
on top of that it has issues with off-screen rendering (renders upside down and too big - again couldn't reproduce on any other system).
so to sum it up: basically it *could* work, but highly probably requires someone with some tech knowledge and a lot of patience to get it working properly as it involves a lot of playing around with graphic settings, driver versions, etc. as intel cards simply aren't made for gaming :-/