Debian minimal, with NGINX or some other light HTTP is easy on even 64 megs. On 128, you can do stuff like PHP and you can run whatever efficient web stuff you like. The web is light, if you're efficient about it.
As an aside, one of my friends has a 100 meg free VPS from one of the terrible free vps providers. He has managed to squeeze a Minecraft server on, and that can hold about 2 or 3 players! (apart from the terrible network, cpu and uptime)
As an aside, one of my friends has a 100 meg free VPS from one of the terrible free vps providers. He has managed to squeeze a Minecraft server on, and that can hold about 2 or 3 players! (apart from the terrible network, cpu and uptime)