I'd grab fedora core 3, do a minimal install and then use yum to add perl and httpd. I think running *any* GUI is going to kill that box.
The advantage of this setup is leveraging the network repositories that yum will use to pull down any additional software that you need without having to swap disks or having to make sure you choose everything you need during the install. If you tell it you want apache, it will grab the latest version and all its dependencies, pull them down and install them.
Xandros may have a similar fuctionality to yum, but I don't know anything about Xandros.