I think the more correct question is:
"In NT 4 with service pack whatever good for _anything_?"
The answer is no. It's a worthless operating system unless you have to support legacy applications. You would be better served with W2k.
My personal preference for a Linux distro (which I would prefer) would be to use Damn Small Linux.
It's default install is 50 megs and it's designed to be.. (with slightly different versions for each purpose)
1. Installed onto low-resource machines like yours.
2. Run inside qemu (VM program and scripts are included in zip file)
3. Be used in conjuction with vmware player.
4. Ran from cdrom.
5. Ran from USB flash drive.
For a system like yours it may even be to old to even boot off of a normal cdrom installer. DSL provides syslinux boot cdroms for just this purpose.
It's a minimal system designed for fast running in minimal environments. By default it uses Busybox (which is a stripped down Unix environment for embedded machines), but it has a utility to upgrade your system to run GNU utilities (which is what most Linux systems use).
After you upgrade to GNU tools then you can upgrade to Apt-get compatability. From there it is designed to be use Debian 'OldStable' repositories. (which is Debian Woody).
The whole proccess from minimal system running busybox to Debian compatability takes about 4 mouse clicks. It's very easy. They even have a old version of synaptic package manager for installing stuff graphically.
Try out the Qemu version first if you want to see what it will be like. It will run well from inside Windows on a decent machine. (with qemu it does some limited emulation so it won't run at native speeds, but on a decent computer it will give you a idea of what to expect with it.) I suggest that everybody tries this. It's very nice for a 50 meg system image and if you like it then you can get the USB flash key version and carry around your operating system in your pocket.
http://www.damnsmalllinux.org/
The version that includes the qemu VM would be the dsl-2.4-embedded.zip
For installation to the harddrive you'd want to use a different image though. See the documentation on the website for details.
You can probably use it to update to current Debian Stable if you'd like and that would get you access to more modern programs. Just don't try to install KDE or Gnome or anything like that.
(after upgrading to apt compatability then you just edit the /etc/apt/sources.list file and change 'oldstable' to 'stable', then run apt-get update and apt-get dist-upgrade. You won't have enough room in the quemu image by default though. I havent' tried it yet so I don't know how the upgrade itself would go.)