You are asking this in the Debian forum... so you know what answer you expect... LOL...
Debian is *quite* another distro as compared to Red Hat. Red Hat is complete, and installs a complete enviromnent. Almost a no-brainer and mimicks Windoze: insert CD -> wait 45 minutes -> PC ready. (Which is not my preference, but nevertheless an admirable achievement)
The advantage of Debian is that it is completely customizable to your needs and your limitations like HW platform.
I don think is goes as far as Damn Small Linux or Linux From Scratch, but you might not need such a stripped installation.
Now the point: I agree that 64 MB RAM is not much for running KDE. Try a lighweight windows manager, I heard that icewm is quite lite and fast and yet gives a look and feel most people are accustomed to. I think Linux console will run on everything with 64 MB RAM, bit it is the window manager which makes a big difference when you need a GUI.
jlinkels
---EDIT---
Now I see it was the general distro forum where you posted this... just went up one step to much in the tree... oh well... I am still a supporter of Debian.