Agreed, all the regulations M$ is trying to ram down our throats is scary. I don't like how M$ trys to force their proprietary formats on you either. I think you will appreciate Linux and wonder what M$ is doing with Vista and their ridiculous "requirements". When an OS tells you that you it requires the massive system that M$ wants, something is very wrong.
How about "you can download these codecs anywhere, except in the US, where it is illegal"?
Puppy might be ok, I haven't looked at it in a long time. Also look at trying Ubuntu or Mepis perhaps. They are "bigger" but still come on one CD, should run in live mode so if you like it, you can install it from the desktop icon in the live demo. This is a good way to find out if it will identify your hardware. From what I've read, onboard Nvidia Geforce 610x board should work out of the box with new kernels, ie Ubuntu Feisty (7.04). I don't have the board, just what I read. Some other distros might set up mulitmedia better than Ubuntu. but you can make it all work. Iam using 64bit stuff.
Visit distrowatch.com to learn more about popular Linux distros. You might want to read the blurb about their goals and see if it fits your need.
I am a glutten for punishment and am ordering a AMD/ATI 690G and will try to make it work with Linux next. Gary Key, an AT reviewer, says he got Suse 10.2 to work so it is a very good sigh. Historically, Nvidia has played better with Linux. Always do a search for hardware that is Linux compatible before buying it.