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I have an old Toshiba Satellite, with 512 Mb of ram and a 1.6 GHz Celeron M, and 80 Gb Fujitsu hard drive. What would be the best Ubuntu distribution to install on this laptop? Or any other suggestions? Upgrade the RAM to 2 Gb is an option maybe, 2Gb is the maximum supported. It's know it's getting old.

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Go with Lubuntu 14.04. It is supported till April 2019. I have 3G RAM on an old HP laptop with an AMD Turion T-58 processor. It's bit slow on Unity Desktop but still workable.

The RAM upgrade will increase responsiveness by reducing swapping memory to disk.

If you just need a server then it will work well.