How to setup a low cost linux box

Inspired by http://rdiggle.blogspot.com/ (aka dirk diggler) I just put my configuration instructions for non IT people (linux newbies) to this blog, rather than to store it and forget it somewhere in the dungeons of my harddrive.
Idea is to use an old PC /laptop as a headless linux box under the couch to serve you with usefull nerdy and geeky stuff in daily life. In my case this is a Thinkpad T22, 256Megs of RAM and a 20 Gig harddrive....

So let's start: