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I have 768MB ram and 1.7GHz Intel processor.

I think that's the problem . So please recommend me a lighter version of Ubuntu. That will give me optimum performance. Because i have seen it performing really well even on lower configuration systems.

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The version of Ubuntu that has the least impact on resources is Lubuntu. It uses the LXDE desktop environment. Some people will tell you that Xubuntu is better, but there are things available that prove that it actually uses more RAM than a stock Ubuntu install.

It's a bit easier to just do a fresh install of Lubuntu than to try to convert a current installation of Ubuntu to Lubuntu (though it is possible). If you absolutely want to do the conversion I can provide you the information on how to do it.

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