The old saying is still true; you get what you pay for.
Yes, it has sufficient storage; but a dual core 1.8Ghz CPU with 1 GB of RAM .. AND Windows Vista? Ugh.
If you are indeed only going to serve the web, it will be sufficient. But I really recommend you at least have a look at the Dell Desktops and customize it the way you want. They may even offer Windows XP still and they are always running specials. (check fatwallet.com).
To answer your question; the machine is perfectly capable of running XP. Probably more so than Vista ... but No, Best Buy will not load for you instead.
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