Distro recommendations please

I have aquired two very old PCs. I would like to configure each as a "kids first computer" for my nephew and god daughter. Obviously for young kids, there are certain requirements that are paramount as follows:
* I need to be able to severely restrict any internet activity - some for of parental control is crucial.
* Although the kids won't be doing any admin tasks, the interface needs to look clean and appeal to the younger viewer, and besides their mothers are not computer gurus.
* Must be able to install and run visually appealling educational software (eg Flash games)

Right, there's the requirements, now here's what I have to work with:
* 400MHz celeron
* 32MB (yes, that's thirty two megabytes, anyone remember those days?) RAM
* 8 (yes eight) GB hard disk
* Primitive sound and video hardware
* CD ROM, ethernet etc.

Based on the above, can anyone recommend a decent compact distro, preferably on a LiveCD so I can try it first?

The specs for those computers preclude running the usual popular suggestions like Ubuntu, SuSE, or Fedora, but you could probably run any of the distributions listed in the "What about old computers?" section here:

http://www.linuxforums.org/forum/lin...e-posting.html

I could be wrong, but I'm thinking that the 32 MB of RAM might be the biggest hurdle.

Most Linux distros these days are looking for something like 128 MB, or more. However, I won't go so far as to say there aren't any that will run on that amount. If nothing else, maybe some of the older versions of certain distros will run on that amount.

DSL claims it will run on that amount:

Minimum Hardware Requirements - DSL Wiki