I rescued this 14" T40 from ewaste and installed both Windows XP and Windows 98SE on it. It works perfectly.
Defects: It has a single bright spot on the screen. It has a crack in the palmrest below the mouse buttons. See photos. The lid has many scuffs and scratches, the rubber coating has become very soft.
Specs:

• 1.6 ghz Pentium M
• 1 gb RAM
• 40 gb HDD
• CD-RW/DVD
• 14", 1024x768 LCD

• Original battery at 19% health. Windows reports 50 minutes of life at idle.
• Original IBM charger.
• Windows XP installed from factory restore disks, with all original drivers, utilities, and 3rd party software. Legacy update installed and updates applied. Hidden recovery partition in place.
• Windows 98SE installed on second partition, with drivers and Lenovo utilities installed. Also installed 3rd party USB utility to enable using thumb drives in 98SE. (Networking and modem drivers are on disk but not system: Installed XP from optical disk, installed legacy update from USB stick, and downloaded updates over Wifi, all without issue.
• Screen: blemish as noted. Otherwise good.
• Keyboard: all keys work
• Optical drive: boots and reads OK, did not test burning
  
• USB: works with thumb drive
  
• speakers: work
• Not tested: card slot, modem, headphone/speaker jack, VGA port, ethernet port, parallel port.

Free shipping in the US.
Overseas buyers: due to issues with sending used lithium batteries overseas, I will omit the battery. If leaving out the battery reduces postage, I will refund any excess.