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It should be fine the majority of the time for 720p and the occasional 1080p fansub. The main issues you'll run into with non-modern CPUs (i.e. the E5700 is two generations old tech from 4 years ago) is slow soft-sub effects. VSFilter is single-threaded and can have some significant performance bottlenecks when too much is going on at the same time in a given frame.
[BeginRant]
Unfortunately, some groups don't take time to ensure that typesetting and karaoke is able to playback in real-time, with CPU-decoding, on slightly older hardware. Usually this isn't a problem 95%+ of the time, but you'll occasionally run into extremes with typesetting/kara which can only run in real-time on overclocked Intel Core i7 computers, as the result of massive stupidity. Attempting to avoid such issues, I personally wouldn't consider anything with lower single-thread performance than an Intel Core i3 (Sandy Bridge) for hassle-free anime playback. The just released Core i3-2105 looks like a good-bet for a budget machine without a discrete GPU. Of course that sets the bar to perfect 1080p playback, rather than acceptable 720p playback.
[/EndRant]
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