The kernels below 2.4.19 has documented troubles to manage large memory sizes.
Ivé had the samt problem running big servers on RH 7.3 with oracle with SAN solutions and 4gb RAM. When i changed kernel to 2.4.19 that dramaticly changed to the better, a couple of big fixes on memory and IO handling solved the most of our problems.
Try to upgrade to that kernel 2.4.19 at least and upgrade to RH 7.3 that i think is the most stable freeware distribution for servers. Otherwise it should not be a problem for memory sizes up to 4gb. Also enable hypertreading on you cpus for better scaleability for Oracles parallel querys.
Ive migrated about 60 unixserver to Linux that now runs RH 7.3 with 2.4.19 with oracle as a databasehandler, so if you need some more tip just post here or on my site
http://www.utterberg.com/ under the forums section.
Regards
