Something basic with only commandline to start with I'd say. You could test the box running a LiveCD like KNOPPIX first, then decide. But don't expect for instance to be able to install Fedora Core 5 (won't start installer with less than 128MB) or any Xwindows to run. If you want something small try Zenwalk (based on Slackware) which comes as aprox 200MB cli-only and 450MB full install iso (compare that with a minimal install of FC5 which is about 650MB).
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