ROX-Filer had its desktop stored in an XML file which meant that "a file I copied from that diskette you just formatted" might leave nothing more than an equivalent of a symlink... other than that, it's really nice and usable.
Shameless plug: there's an ALT Linux based Antique distro geared towards Russian users but being tested on 64M systems as well; a crop of console based minimalistic distros; and some of the *really* old but still alive and useful systems might continue to work as ALTSP thin clients (starting from Pentium 75/16M).
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