www.itinfusion.ca/.../

Check that out.

Ok.. makes much more sense now.

Also, read this one:

http://ubuntuforums.org/showthread.php?t=419901

Yes, you can do ubuntu terminal.. though I would use Xubuntu but on the
ram provided, its still iffy.

Here is a thread on Xubuntu and ram:
ubuntuforums.org/archive/index.php/t-101129.html

DSL will probably be a better way to go.