It looks like it will be pushing it.
Originally Posted by http://windows.microsoft.com/systemrequirements
If you want to run Windows 7 on your PC, here's what it takes:
• 1 gigahertz (GHz) or faster 32-bit (x86) or 64-bit (x64) processor
• 1 gigabyte (GB) RAM (32-bit) or 2 GB RAM (64-bit)
• 16 GB available hard disk space (32-bit) or 20 GB (64-bit)
• DirectX 9 graphics device with WDDM 1.0 or higher driver
You are slightly less than 1Gb RAM (Presumably as your onboard video is stealing some)
Your CPU is also slower than the recommended 1Ghz, however I will say that that's terrible information from MS as a 1Ghz Pentium 3 or 2 processor is a completely differently ball game to a 1Ghz Dual core . . . . .
I don't know if these specs from MS are an absolute it won't even let you install on anything less or it will let you install but just not run very good?
My advice would be, if for "some" reason you have a "spare" copy of Windows 7 laying around, I would try and dual boot it along with Windows XP, that way if it doesn't let you install or if it just doesn't run well at all then you can simply just boot back into Windows XP.
If you are looking at going out to purchase Windows 7 then I wouldn't bother I would wait until you had a better spec'd machine to install it on.