I generally avoid immediate updates during install. Sometimes I do that, but it always makes me a little uneasy. I don't quite trust the process. I prefer starting from a known baseline, then updating from there. Anyway, if you're looking at other Linux distros, here's a short list of ones to try...
Debian? - I'm not sure this would be best for you, but if you got it going, it's like an Ubuntu minimal install, and you can customize it as you like. It doesn't do nearly as much hand holding as Ubuntu, so you'd likely have issues setting it up.
Mint - basically the same as Ubuntu. A few things moved around, but I think it'll be diverging more into the future with Ubuntu's big changes.
OpenSuSE - The Win7 of Linux. It has everything, and the kitchen sink. Kind of bloated, but a nice O/S
Mandriva - Noob friendly, with a nice setup. Uncertain future.Worth a try.
Puppy - Very light distro, mainly for older computers. It does a lot with minimal resources, and looks polished for it's small footprint.
SliTaz - Ultralight distro. I wouldn't necessarily recommend it except for doorstop computers, but you should check it out. The whole O/S is smaller than most email clients, and it will easily fit on a USB drive. Amazing amount of polish for it's tiny size, and it makes a great portable O/S. It's worth trying to see what can be done with almost nothing.