I have here information straight from the Ubuntu site about it's system requirements.
On a system with that amount of disk space it is suggested that you use "Xubuntu" installation. Also it states with the minimum requirements that you'll be running shell/terminal only (server mode) if you want decent performance. (Non-GUI) So web-browsing would be limited to text only browsers such as Lynx if you're looking for any level of performance.
The minimum requirements are only likely to allow a server (non-graphical) installation to run well.
They also have information for running Ubuntu on Legacy Hardware or very minimal systems.
Short answer is yes, it can be done, long answer. Read below, and view the webpage.
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Bare Minimum requirements
It should be possible to get Ubuntu running on a system with the following minimum hardware specification, although it is unlikely that the system would run well. You should use the Alternate install CD to attempt such an installation.
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300 MHz x86 processor
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64 MB of system memory (RAM)
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At least 4 GB of disk space (for full installation and swap space)
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VGA graphics card capable of 640x480 resolution
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CD-ROM drive or network card
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Low-spec computers (Xubuntu)
If you have an old or low-spec computer, using a lightweight desktop system such as Xubuntu is recommended, as it should make more efficient use of your system's resources.
If your system has less than 192 MB of system memory, use the Alternate Installation CD.
Note: If you have a low-specification computer, certain features may be automatically turned off to conserve system resources. For example, if you have a graphics card with only a small amount of video memory (VRAM), the boot-up screen may not be shown.
Minimum requirements
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166 MHz processor
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64 MB of system memory (RAM)
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At least 1.5 GB of disk space
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VGA graphics card
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LTSP thin-client computers
If you are intending to use a computer as a thin client (such as a client for an Edubuntu LTSP Terminal Server), only a low-specification computer capable of displaying graphics and connecting to a network is required.
Absolute minimum installation
The absolute minimum Ubuntu installation provides only a command-line interface and installs very few packages. You can add additional packages and a graphical interface manually.
In order to install the absolute minimum installation, use the Alternate Installation CD.
It is possible that you will be able to install Ubuntu on computers with lower specifications than those given below. However, installation may be extremely difficult and Ubuntu is likely to run very slowly on such a system.
Absolute minimum requirements
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Intel 486 processor
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32 MB of system memory (RAM)
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300 MB of disk space