OP here. I bought my netbook last night (acer, same specs as above), and after downloading the client and installing (which took quite a while) I had 5 mins or so to play before bed.
The opening movie ran fairly smooth, so I got a little excited. Then I picked one of my lowbies, and after a very long load, I ended up in the harbor. It was barely playable. Nothing was very smooth. I needed sleep, so I didn't have a chance to test any quests. It would probably be fine for inventory and AH stuff, but pretty frustrating to quest with.
I didn't have time to adjust settings and I was having issues with my router, so things could improve.