8-10 gig hard drive is nothing these days, if you do downloading you would need at least 60-100 gig.
52x CD drive should be replaced with at least a DVD drive if not a CD burner. DVD burner would be even better.
Windows ME sucks monkey balls. Format the hard drive and go with Windows 2000 or if you are computer literate try out a distro of Linux.
You may even want to kick up the ram to 512 meg.
With that being said, I would think that system would be worth $200-$250 at best. It might be good to run a server as long as you load a more secure OS.