Read More @ ACDamn Small Linux 4.1 - "Damn, that IS a small operating system" is not something you hear everyday*, After using DSL 4.1, you may just hear yourself saying it. The goal of the Damn Small Linux (DSL) project is to pack as much open source goodness in the form of a fully functional desktop operating system onto a business card cd. Additionally, DSL is designed to run on older "obsolete" hardware. DSL's current system requirements are as low as a 486 with 16MBs of RAM. You might think that it must be terribly crippled due to these constraints, but you would be wrong. After booting you'll be browsing the web, listening to music and playing games in no time at all.
*As an embedded linux engineer, I actually hear it quite often.