My Mac is running 768MB RAM and my system runs fantastic, even if it is a little on the slow side. I use a lot of heavy apps like Photoshop and Final Cut Pro, and the Mac works very well. Obviously apart from my sheer frustration at the look of Tiger and its inconsistency, my only other real complaint is I randomly get a lot of rainbow beachballs, especially in Photoshop occasionally. Like I don't even have to be doing anything and I'll get one for 3 seconds or something. Weird, but I've lived with it.
I also can't wait for 10.4.3, hopefully I can turn on my Mac for once without having recovered files in the Trash!