96MB RAM is quite a small amount if you're planning to run KDE/Gnome..I know it works, yes, but it won't probably be a pleasant experience if you're doing anything "big". If you like Gnome, consider XFCE, it's lighter and quite nice too.
The distribution itself doesn't matter that much, except that it ought to be small in size for the HD, if you don't happen to have a huge harddrive. Therefore I'd consider the one-cd distributions that claim to sit on a few hundred megabytes (hey btw, read the Windows Vista requirements !
). The thing that's going to eat up most of the resources is the desktop environment, so it doesn't matter that much -- you can choose, try and switch as much as you want.
Ubuntu could do, but it's not too small (though a lot smaller than Fedora), Zenwalk's base install or Arch Linux might be good tries too. DamnSmallLinux is small, but I'm not sure if it's too good for daily use..same goes for Puppy, except that it's probably a bit better.
I'd go to Distrowatch and start going through the distributions that claim to be "small". Beware of too "lightweight" ones, unless you want a bare backbone