First, let me tell you that I'm not a Linux expert; however, I can tell you that Linux can save you a shitload of money - not to mention agravation - not only as a server, but also as a workstation.
Second, I run Linux on PII just fine and I'd suggest lots of memory.
Third, I'd suggest that you be more specific on what you'd like to do and accomplish, and then repost the question. Linux can do many, many things.
Fourth, try Knoppix or Mandrake first, learn lots of Linix, become a member of your local LUG (Linux Users Group), and keep learnign Linux.
Fifth, get rid of windoze ME ASAP.
Good luck!