Debian works with that memory.make ur system lean.use apt to remove unwanted packages(Synaptic gui).run a small window manager like icewm etc if u want more performance.use debian's "main" repository if u want the legendory stability.
Now,RedHat(RHEL) and its forks(centos,whel etc) are having good gui tools to set up server side.even RH/Fedora is the only distro am aware which enforces firewall by default(using lokkit script).
So its ur choice.For production systems,FreeBSD is the last answer as it is rock-solid.
U can go to Mindstorm Book stall in north railway station road to get these DVDs/CD's.also some rainbowinfotech was distributing Linux CD's in Ernakulam earlier,as is suncochin at palarivattom(sun os training centre).
