Yes! I have Ubuntu installed on this Compaq Mini Netbook with 2GB RAM. It originally came with Windows XP installed. After a year, I tried Ubuntu from a pen drive. The sound needed a quick command, found on Ubuntu support forums, and I could even with a tweak make the webcam, and Google Earth work. In short, everything could easily be made to work. So I blasted XP from the hard drive, and installed Ubuntu.
Ubuntu loads much faster than Windows XP + AV etc. It runs faster, smoother, is perfectly stable. I've now run it for nearly a year, and absolutely no regrets. I use it for browsing, movies/TV, work documents, and also a lot of photo editing using Gimp.
I've since installed Ubuntu on my daughter's laptop, and Xubuntu on an older laptop -all successful.
My recommendation though is to try Linux distros first from a pen drive. It does take an age to load that way, but can be used to test the hard ware.