This kind of machine should be loaded with XP or Ubuntu. 1gb memory just barely ok for Win7.
However think this way- Get this machine and sell the COA label. Load XP if you have Compaq /HP recover CD available. - This might be a deal for basic business machine or for internet purpose..

The trouble with that is the recovery disk looks at the system and if it doesnt match what should be on the machine the recovery cd wont work. I had many people call in about this issue because they changed something inside the machine and it wouldnt work. Also the other problem is finding the drivers for xp to work on this machine will be very difficult because they are designed it to work with windows 7 not xp. Also hp will not help u locate drivers or support anything to do with xp. The easier thing would be to add another stick of ram so that this thing will have some muscle. I used to work for HP desktop support for about a year.

#2 Here is the driver download page with XP,VISTA and win & driver.
You really work for HP ? Why get out of there ?
It seems pretty popular and sold out already. If you miss this one Newegg still have AMD 64 X2 2.1Ghz 2GB RAM 80GB with XP for about the same price.
http://www.newegg.com/Product/Product.aspx?Item=N82E16883157012

Drivers for OEM systems don't need to come from the OEM, nor should they. Those are old drivers instead of the newer ones with bugfixes and increased functionality and compatibility.

OEMs use no special hardware at the discrete chip level, the same chipset, sound chip, network, etc. There is nothing "needed" for functionality of the system that you can't get elsewhere except with laptops/other mobile devices, sometimes the power management software needs to come from the OEM.