It has an ATI X300 graphics card, but I cannot find drivers on AMD's website.
No AMD drivers, no Lenovo drivers. Grrr.
The ATI X GPUs got stuck in some kind of hole, when AMD took over ATI. No modern driver support, and no legacy driver support. I don't know why they did it, but this has made many a used laptop only good for Linux.
Not being the biggest Ubuntu fan, my vote is PCLinuxOS.
However, do you know anybody with a Windows 7 disc? Video is the only real HW issue (aside from RAM, which is fixable), and sometimes the X series work with MS' drivers (I've only had them work on desktops, and am not sure why the laptops have been no-gos). Not gaming worthy or anything, but you might get better than a pure software GUI. It wouldn't hurt to install and update, but not activate, the OS, to test it out, if you can.