As above. Damn Small Linux (DSL) also comes to mind, and potentially Crunchbang might suit (Debian + OpenBox). Personally if I was taking that route I'd grab a netinstall and install only the base and a light WM to keep the size down to an absolute minimum without decreasing usability.
Wiki has a list of small/light distros you might want to check out. Ideally though you'd find immense benefit in adding a little more RAM if you can do so.
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