Glorfindel has some ancient Windows 95 monster which has amongst other notable qualities, 32MB of RAM. I believe it runs DSL (Damn Small Linux) now...
You can probably get that Mac up and running pretty cheaply, I would definitely give that a try.
My laptop was unusable on 256MB of RAM, I got a $20 upgrade to 2GB and that together with a new power supply for about $7 got it running perfectly well. Meanwhile, people buy new computers all the time for upwards of $300 just so they can use the internet...
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