|There is no real recommendation for you.|
Concerning the performance, you should better install Windows 98.
Concerning security (if one can speak of security on Windows), you'd better install Windows XP.
So whatever you do, it's bad.
I guess, there are a lot of security holes, that are not patched and Microsoft didn't support Win98 anymore.
On WinXP, you have to have a lot of time only for starting up the system. Trying to work with such system is impossible.
I tried that on a PC such as yours, for a friend of mine. Forget it.
Whenever you try to start a program, Windows begins to swap parts of the system to it's page file aso.
An older (smaller) Linux may be a possibility for your PC.
Please send a reply, if you solved the problem !!!