
I am using a Dell Dimension 3000 with the onboard video right now. Yeah I know it doesn't meet the minimum specs that MS says you need, but it works just fine. I did an upgrade to the V word (Ultimate) just over a week ago on this old warhorse just for kicks, and then downloaded 7 Ultimate and decided to go for the gusto. I have a couple of virtual machines on my work computer with 7 and I use 2008 Enterprise server with Hyper-V as my desktop OS.
The only real trick with the video is this: Download the drivers from Dell for your original configuration, R106458.exe, and run it to extract the files to your drive. Following the 7 install you will have a glorious 640x480 desktop that made me want to lose my dinner, but don't lose hope. Navigate to the location of your driver files, c:\dell\drivers\R106458 if you went with the default, and locate the setup.exe file. If you try to run it you will be cussin' me :sarc: 'cause it will choke and laugh at you and say you can't run this file on 7. So don't give it the satisfaction and just right click on the file and select properties. Select the compatibility tab and click the box for XP mode, and hit enter. You won't be able to see the whole dialog in the window nor could I scroll to bring it to view, but just hit enter. Then run the setup.exe and it will tell you that it needs to restart. Do it and when it comes up again you should be looking at a 1280x1024 screen.
Hope I didn't miss anything. Enjoy! You wont get video quality and performance as you would with a high performance video card, but it beats Vista or XP for that matter. A bit of a learning curve, but if you can figure the workarounds life is good.
Stan