the winxp comp should be np...but 32 MB...
Sorry, I didn't read carefully enough to see that you were interested in linux on a computer with only 32 MB RAM running windows98se. The computer running winxp should not have too much problem running a lightweight version of linux, as I would expect anything running winxp to have at least 128 MB RAM. Never ran into a Drive G problem, sorry...
Maybe you could post to any forum associated with wubi?
32MB is tough....mepis antiX requires 64 MB, as does puppy, which will still probably use swap space on your hard drive to run on 64 MB RAM.
You might consider Damn Small Linux, which supposedly can run on as little as 16 MB RAM on a x486, but that would be terminal-only mode (no graphics). At less than 128 MB RAM, it will still use some swap space on your hard drive. Feather linux will run graphics (X-windows) at only 24 MB RAM.
So I would use mepis anti-x on the 128 MB computer and Damn Small linux or feather linux for the 32 MB RAM computer.
Also note, it would probably be quite inexpensive to max out the RAM on these machines (if they are not maxed already) to get more options and much better performance.
http://antix.mepis.org/index.php/Main_Page
http://www.puppylinux.com/
http://www.damnsmalllinux.org/
http://featherlinux.berlios.de/
While wubi will not work on the 32 MB computer, I would still think it should run on any computer that has winxp installed (but not win98se).