if you look into the distributions i have a memory that f ex Mandriva offered a option where you could make your unbootable cd boot able via your floppy disk.
That is it will access your CD and from there install..
Check into the how to installs, but your real problem will be memory storageplace and speed. most distributions seem to compete with XP in terms of the place they take on your harddrive.
I mean, one of the things that attracted me to linux was its smallness once. Nowadays every Disto seems to crave something like 1 GIG to install, which makes them slow when loading if you're using (like me) an older laptop....
But i still want a cool GUI
Another option=
If you have place to download Mandriva/mandrakes 2006 i586 edition ISO:s
on the machines harddrive and then make an unformated area for your linux, you can make a bootable floppy and then boot to your vfat partition and from there install your Mandriva/mandrakes 2006. then you have to choose ..very carefully.. what to install, my choice would be ICEWM as it is in the distro if you want a GUI. This edition is supposed to be optimized for pentsium and faster.Otherwise i woould go for an older slackware that you could steer as you like, and upgrade after testing for speed (check into the how to install:s).
Do send me a mail if you find something suitable
i'm always on the lookout for something faster.