Yes, it can be done, but not with the current default system.  You now have to 
be an expert to get Debian to run on that class machine. For Debian I would 
recommend a minimum 32MB with no X, and minimum 64MB if you run X.  However, 
there are alternatives (see www.distrowatch.org for too many alternatives).

Two popular ones I know of are:
DSL (damn small linux) which can be installed from a CD - in fact the entire *.iso image is

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