I have very old 486 laptop with 8MB RAM. I am trying to install Red Hat 6.2 on this machine

- machine has no cdrom. I've used boot floppy (pcmcia.img) to boot installer, it worked, pcmcia works, it managed to set up itself via dhcp. then I choose install via HTTP. installer downloads netstg2.img and hangs on it (but I can ping the system, log (displayed on second console) does not say anything)... I suspect the system of running out of ram - using HTTP it has to download image to its memory and than recompress it (also to memory)...
my question is if I use NFS instead of HTTP I don't have to download the image file? since it is mounted not downloaded? - less memory used... will installer run anyway with 8Meg RAM (text mode install)? maybe you can suggest installing something different (must be Linux, must have small X for VNC and decent choice of packages) - I considered Debian 2.1 (it's documentation says that it needs 4Megs RAM for install) but Debian is kind of sick to me. I've read its documentation for like 20 minutes and I still don't know which floppies to download to install via FTP using PCMCIA Ethernet card...
any toughts? I would really like to have Red Hat on this laptop since I know RH well... I have no option of moving the disk to different machine...