For now I would say both. We have set the minimum specs (these are the specs if you want to mix reasonably high def (i.e. 720p) footage) to be fairly modern hardware. This is because we have been unable to test a wide range of older hardware, and so are not confident of the performance on a lot of older setups. Technically the minimum specs are actually a little high, as I know that the later MacBooks (i.e. not the MacBook Pro) work fine, and I know a bunch of our users use them. I don't have access to a similar system to yours, so really the only way is to try it. The closest machine to your system I do have access to is a PowerBook 1.67 GHz, and I can tell you that it is definitely under spec (though 2 x 320x240 movies can work fine), haha - but that is so far below the processing power of your system.