Hello Aneesh
So far, I've narrowed the selection down to Puppy Linux and Xubuntu. Does
anyone have any experience with either? If so, which would be better
suited
to the given hardware?

I am using Xubuntu since few months, it works fine on my 256 MB/1.8 Gz
laptop [ except 3D accleration because of SiS card].

If you looking for a still lighter linux, with all
media/office/internet/drivers you may try Zenwalk [ http://www.zenwalk.org ]

OR
Dreamlinux [http://www.dreamlinux.com.br/english/index.html] .

Zenwalk is Slackware based, and Dreamlinux is Debian based.

The good thing about both of them is that they run XFCE desktop, and support
all media types. [Dreamlinux has Mac OSX like look and is very hard to
configure it back to linux look]


Regards & Good Luck

Udayraj V. Bal
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