bobjack... have you looked at Puppy Linux? last year i used a slimmed down version of it called LitePup on a Thinkpad 560x, 233mhz w/64mb ram. i ran Opera 9.02 and Abiword. it was not the fastest of beasts, but it was quite functional. i was able to use flash and watch video, etc.
with 128 Ram you should be able to run one of the older versions of Puppy. 109CE (community edition) comes with Open Office and Firefox 1.5. you'll undoubtedly need a swap file for it -- i think they recommend 256MB. might be worth a look.
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