In theory, you should be able to install Linux and have everything working fine. Well, as long as the modem is not a Winmodem. You may have questionable video support, I'm not sure. Check
http://www.xfree86.org for a current list of supported cards.
I would recommend against tryint to use the restore disk to partition your drive, cuz I doubt it will work. You'll have to either use FDISK to delete all your partitions, start over, and reinstall both windows and Linux, or, you can use whatever utility your distro comes with. Another option is partition magic, which rocks, but ain't cheap.
Let us know how you decide to go about it, and we can help ya out.
-M