Q: What are the Minimum and Maximum Memory Requirements?
A: Linux needs at least 4MB, and then you will need to use special installation procedures until the disk swap space is installed. Linux will run comfortably in 4MB of RAM, although running GUI apps is impractically slow because they need to swap out to disk.
Some applications, like StarOffice, require 32 MB of physical memory, and compiling C++ code can easily consume over 100 MB of combined physical and virtual memory.
I'm using 6.2 myself but with 256 MB RAM so I don't share your dilemma. You'll need more RAM for KDE or Gnome anyway. It sounds like you'll want to avaoid the CLI as much as possible.
try the follwing links with more info on your questions.
http://www.tldp.org/FAQ/Linux-FAQ/intro.html
http://www.redhat.com/apps/support/