Judging from the Dell people statement, kernel 2.6.20 should have no problem 
with Optiplex's 320 SATA, but I was unable to install 7.04 Beta 1 on this 
machine (black screen, blinking prompt, etc.).
I can confirm that Debian Etch with kernel 2.6.18 installs and runs on Dell 
Optiplex 320 without hassles (not counting the use of LILO instead of GRUB as a 
bootloader).

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can't restart a desktop installation on i386
https://bugs.launchpad.net/bugs/79548
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Bugs, which is the bug contact for Ubuntu.

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