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Xubuntu uses the same base system as Ubuntu, but replaces GNOME with XFCE, and OpenOffice with Gnumeric and AbiWord.
This makes for a usable system for lower-spec machines, and a sprightlier system for new machines.
Being based on the same software channels as Ubuntu, you can easily install OpenOffice and other desktops after installation if you find you need them.
The text-based installation CD installs a full graphics Xubuntu system, just like the Desktop CD.
The text-based installer requires less memory to run the installation, and provides support in the installer for advanced features such as software RAID and LVM.