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DefenseGrid: The Awakening is a great low-resource tower defense game.
The original Half-Life should work perfectly for you. TF2 worked fine on my Pentium3 650Mhz although its grown a bit over the last few years.
PeggleExtreme (Peggle with Valve-art and themes) is worth playing too.
Just depends on what you're into.
Most 2D games should work fine. Hard to be sure without knowing any specs, though.
EDIT: oh and snapshot.
EDIT: Magic is on daily sale 2012 and 2013.
http://store.steampowered.com/sale/wintersale2012_magicthegatheringfranchise