yeah you should be able to run Linux/BSD on that you might struggle running windows on that. there are linux distros out there that are designed for older Hardware, here are some personal reccomendations:
feather Linux
http://featherlinux.berlios.de/
Vector Linux 4.3
http://www.vectorlinux.com/
DSL
http://www.damnsmalllinux.org/
Puppy Linux
http://www.puppylinux.org/user/viewpage.php?page_id=3
Slackware
http://www.slackware.com/
BeatrIX
http://www.watsky.net/
Elive
http://www.elivecd.org/
hope this Helps,
Jake