With that little RAM, your choices are rather limited. I've seen compilations of small distros, but I don't have any links. You can try googling for them. I also noticed this thread
listed at that bottom of this page where people are suggesting distro for small machines.
Have you tried any of the "cheat codes" (boot time options) that are available for DSL to see if they can get the mouse or keyboard detected? Or are you unable to even type in anything at the boot prompt?