Hi,
I have a Compaq Armada E500, PIII-650, 12 GB HDD, 192 MB Ram (128 Added), DVD driver, 14.1 " TFT Panel (1024x768), Lucent Winmodem, Intel Ethernet etc.
From Mdk 9.0 to Mdk 10.0 Official (Current) works fine. Just now I am using this computer. Allthough this is an old one speed is sufficient.
As for your screen problem, only set screen type to LCD panel 1024x768 when installing Mandrake. Ati rage mobility automaticalliy comes selected.
For Lucent modem and Synaptics touuchpad you have to do some small adjustments. And everything goes fine.
Here is my document about installing Mandrake 10.0 Official PowerPack on this computer.
http://www.elektronist.com/linux/kurulum/e500/e500.html
(Sorry in Turkish. But anyway take a look. Pictures tell much. You may understand changes in configuration files too.)