Like IsOs says, the larger images you see when you scan at higher resolutions (DPI) are simply due to the fact that the image shown on your monitor is sized relative to your display resolution. Your image editing software should allow you to zoom in/out to obtain a workable size.
Now, the detail achieved in a high resolution scan is just not there on a lower resolution scan, no matter how "big" you ultimately make that low resolution scan. (things start to get "blocky"
So, if you want higher resolution (better quality), you must scan at the higher DPI. The only true solution for you is more RAM.
There are a couple of things that may help you out though in the meantime.
First, determine the minimum image size you need for whatever project you are working on (e-mail, desktop publishing, printing, etc.). Then scan at the appropriate DPI.
You can also use various image editing software to resize your image further (and/or save it in a different format). For example, a 640x480 or 320x240 JPEG image may be of sufficient size for most of your e-mailing needs (and certainly upload/download much faster than say a 1280x1024 BMP bitmap!)
I like using a very basic image editing software program like Irfanview (free download at irfanview.com) or ScreenPrint Deluxe if I'm just resizing, etc).
For more complex chores, I like PaintShop Pro or Picture It! Both have their strengths and weaknesses (although I prefer the earlier versions of Picture It! to the newer ones - they had fewer features, but much simpler interface and controls)
Well, hope this helps you out some.
R2
p.s. Your machine would truly benefit greatly with another 64 or 128MB RAM! And it is so cheap now.