What would be the best Linux Distro for a small 3 GB Hard Drive? I looked around and most of the good distros probably wouldnt fit on a 3 GB hard drive

3Gb won't be enough if you install everything, but it'll be plenty for an XFCE desktop, or probably GNOME or KDE, but not both. Which distribution you use really depends on your current Linux abilities. Slackware would be a good choice, but it isn't the most user-friendly. The same is true of Debian. It's been a long time since I've used RedHat (now Fedora) or SuSE, but either should be fine if you don't do a default click-through installation and take time to deselect stuff you don't want. Debian-based, desktop-oriented Ubuntu might be a good choice, although a GNOME-based desktop would probably want more than your 160Mb of RAM. However, you could probably get away with a default installation.

I have installs of MEPIS and Knoppix that both took up less than 3GB, but any distro will fit if you only install what you need. If your looking for really small have a look at Damn Small Linux, 50Mb live CD and a uncompressed HD install is around 250MB. You'll also need a swap partition.

I recommend Slackware Linux, but it might not be too user friendly. Just use a window manger that won't take too much resources such as XFCE, Windowmaker or ICEWM. Don't install KDE or GNOME. I have slackware running on a 3 gig HD on my older computer with only 64MB of ram.

Well im not sure for sure but In my estimation you can run a good system with room to spare,a standalone system.Take Mandrake 9.1 for example,,you can buy this for 33 euros i bought mine for 15 euros and although it warned me I didnt "have enough resources" it banged up just fine(After the fifth attempt!). And if you just want linux without the fancy windows youve got just plenty,,just plenty and then you can get to know all the commands if youve got a decent manual.