XP is horrible on 128 MB. I downgraded my eMachines T1440 to Windows 2000 and it runs alot faster, but its still slow.
Downgrade to windows 98 or ME, or even 1.0
1.0 is a bit too low for 128 MB or RAM. I did run the T1440 on Windows 95 and it worked fine at one point (until I uninstalled it). There is no need for a Windows 1.x, 2.x, 3.x, or 3.1x to be installed on a computer with 128 MB because it might never even use half of the memory.
EDIT:
God, I wish I had money to repair my computer. It wasn't great, but it could function, unlike this.
The lowest I can downgrade is to 2000, which I had driver problems and that's the oldest OS my wifi adapter supports.
If you have a LAN cable and a Modem/Router/Ethernet Hub at the cable's length; try connecting it to that. That's how I connect my oldest operating systems to the internet.