Frugal installation is a DSL
feature - and honestly, for your hardware, frugal will probably run better than full installation (the difference in performance is pratically zero, whereas a frugal installation takes a lot less space on the harddrive) - but frankly, for those specs, I'd recommend DeLi Linux
instead of Puppy
- and I'm not sure if this'll work, really.
The proposed installation method should work for both DSL
(frugal!) and Puppy
- but again, 16MB RAM is too little (IMHO) to run X with those two. I've managed to install Puppy
on a P233MMX with 64MB RAM, and it runs really well there, but 16MB - that's a completely different game...