I run Mandrake 8.2, which in terms of size and functionality is pretty close to RH 7.3, on my old laptop. My old lappy's specs are: P120/72MB/2.1GB.
Yes, running bigger apps like KDE 3 or OpenOffice.org take a while to load, but it's been stable as a rock. Unfortunately, I'm pretty well capped at 72 MB, but I can tell you that the step from 40MB to 72MB made all the difference in stability. Your jump to 96MB should give you great joy
!! Just be patient with these older machines and they will give you a great deal of usefulness.