Caitlyn M. Martin writes about the positive experience of installing Damn Small Linux on the Amity CN, who has 48MB of RAM so performance on a system with 32MB
Read it here
On my two Amity CNs, each with 48MB of RAM, I've found that Damn Small Linux runs surprisingly quickly. All the applications run crisply with the sole exception of Firefox, which is quite slow. I expect Firefox would be completely unusable on a system with 32MB of RAM. For simpler web pages Dillo is a very good alternative.
Adding .uci or .unc extensions works well and I can add some very nice apps and gtk2 libraries and still get decent performance. I've also run some .tar.gz extensions and some lightweight applications which are not packaged for DSL. So long as everything lives under /opt I don't run out of ramdisk space and things continue to run well.