Instead of Xubuntu think of PCLinuxOS 2009.4 "Phoenix". It runs an attractive looking Xfce desktop. Just install and add more apps to it later.
My uncle has a reasonably old system (1.4GHz P4 CPU with 768MB RAM, 80+40GB HDD). He is a non-technical person and is currently using XP Pro. He frequently gets virus problems... So, I am suggesting to him to install Linux side-by-side and try it out... He has agreed to check it out... His main needs are browsing, chatting (skype, yahoo), office work (OOo), and listening to music/watching movies...
I want to setup a distro which should be reasonably easy to use and be light-weight... I dont think Ubuntu will run very smoothly, hence I want some other distro...Will Fedora LXDE fit the bill? Does it have OOo pre-installed? What other distro would you recommend?
you system is not old because it is P4 not P3. so please continue with the XP. if he gets virus problem use antivirus cracked. How you know in linux you will not have virus problem. linux will be confusing for him and he will not like it. many packages will not work in linux so better to continue with xp.
As for sticking with XP, doesn't XP require a learning curve? I have seen new users who panic when they accidentally hide/delete their quick launch bar. They shout my "Internet" is deleted considering "e" as internet.
Linux can be what you want it to be.
Everything does have its learning phase, even riding a bicycle needs practice.