Ubuntu Installation :: Swap File Management Or Downgrade

Alright, I just wanted to see if this would even work, so I installed Ubuntu Lucid Linx 10.04 on a 2001 Sony Vaio with 1.7 Ghz. Intel P4 processor and, yes you're reading this correctly, only 256 MB of PC2100 Ram. I dumped in my own PCI wlan card and 64 MB Radeon 9000 Pro AGP card, then I did the installation.

Although I already ordered 2 mem chips (512 MB each) for this system which will max it out, I also created a 5 GB swap partition since I figured that this would greatly enhance the installation and consequent usage thereafter. Now mind you, the installation of 32bit Lucid worked like a charm. Slower than normal, but like a charm. Wifi is working and even the 3D desktop settings are working in advanced mode. BUT the system is just way too slow to react to the mouse and keyboard. I'm certain that the lack of memory has a lot to do with that although I was secretly hoping that the huge swap file would help to make a big perfomance difference. So here now my questions:

1. The swap file doesn't really appear to have made any difference at all. How come?
2. If I wanted to "downgrade" to Xubuntu, how would I accomplish this?
3. Would it be a better idea to just start over with an installation of Crunchbang instead?

I'm trying to get this system working for a relative who's never had a computer before. Whatever I end up with on this machine has to be as simple as possible to use while maintaining some semblence of decent perfomance. I'm sure before too long they'll want to enhance their desktop looks/theme as well so consideration needs to be given to that too. Your suggestions and comments would be appreciated. Again, Ubuntu Lucid runs just fine, although really really slow. Internet is no problem.