Actually making an install CD for a Linux distribution is very simple. All you need is the CD burning software, if you are currently running Windows something like Roxio, or Nero will do. or any other program you use for making CDs.
Then you need the ISO file of the Linux distribution you want to install, There are lot of Linux base Operating Systems out there in the web so you can probably download a multi purpose one and start with that.
ubuntu is a fine one -------->www.ubuntu.com
Linuxmint is a good one too-->www.linuxmint.com
OpenSuse is good also ------->www.opensuse.org/en/
Once you download the iso file is just a matter of burn it as an image in the CD. After the CD is completed you can test it by booting your computer from the CD and test all the software included in the OS.
These will run good in a 1GB of RAM with a core two duo processor or equal computer system. or if you have a 64bit capable system just download the 64bit ISO file image.
Good luck to you.