I got 7.04 to install on a Pentium III w/256MB RAM. I can't imagine
that 7.10 would not run on it. I did switch to the xubuntu desktop
though since it doesn't take as much power. If the graphical install
won't run, you can always opt for the alternate installation disk.

the alternate cd install might be an option for you... 256 Meg ram and
4 gigs of hd if I recall

When installed, 256MB is sufficient. I suggest that you install
it using the alternate-CD (non-liveCD) version

Use alternated CD and even if you have live cd try to install it in command
line. If you have Xubuntu then try that one. Xubuntu is designed for less
powerful machines.

Thanks to all, looks like the alternative version is the way to go

Another very viable Linux distro for little machines
is Puppy Linux. An
80M-90M download, it is full-featured and fast. If
you decide to download
it, also download BurnCDCC from the link on the Puppy
site. You will need
it to burn a CD of the iso. The iso comes as a zip
file, so if you need a
zip utility to open it, get 7-ZIP which is quite good
and free. Good luck.