for your RAM of 128MB.. i would suggest Austrumi from latvia..
http://cyti.latgola.lv/ruuni/index_en.html
I recently installed these (one after another) on my sister's 800 mhz / 128MB machine..
* DSL -- too ugly for her
* beatrix -- too simple for her
* slax standard edition -- usable, but not so good-looking
* xubuntu -- usable, not so good-looking, slower than slax
and last week I installed Austrumi.. its a LIVE-CD thats only 50MB with Enlightenment !!! It also allows you to Install to harddisk.... I did that and she looooooooooooooves the look and feel of it !!! The only thing thats missing in this linux distro is.. GAIM.
I have also installed this on my P1.6 / 128MB laptop and for the first time, my harddisk is not spinning as much, and my cpu resources isnt staying above 90% .. it often stays around 3%
