Huh. I didn't know they were still using Banias Pentium M's on the T42, but looking at the Thinkpad Wiki it appears that all models from the T40 (I bought one of those for my Mom back in 2003 when they were *brand spanking new*) through T42 were basically the same thing with minor part swaps. Honestly I sort of wondered what the deal with that was, learn something new every day.
Anyway, yeah, still useful machines (although I wouldn't hand one to someone expecting to use it with "zero compromise" on the modern web) other than that super-annoying missing PAE cpuflag. Luckily most Linux distributions have installer workarounds for that problem now. I still use a Dell D600, which has exactly the same guts, as a "jobber" machine for various hobby tasks. (It runs Debian.)
... actually, wait, you say the machine is a 1.7ghz model but doesn't identify as having PAE? That's sort of strange, as the Thinkpad Wiki claims the 1.7ghz models were Dothan-based, and Dothan is supposed to identify itself correctly. Does the CPU have one or two MB of secondary cache? If it is Banias then someone should correct the wiki. (It does say that T41s shipped with the Banias 1.7. The T40 I bought way back when was either 1.3 or 1.4ghz, I don't remember.)