My gut call is that XP may be a little much for it.
A 333 Pentium II is pretty bad. I'm running a dual Pentium III at around 900 MHz each, and it's a pig. However, your computer is within the XP minimum requirements. Barely.
You might gain a bit if you can beef up the RAM a bit (some laptops allow this), but its never going to be a speed demon.
On the other hand, if you're doing mostly word processing, and nothing involving heavy computing or graphics, it could be just fine.