|Linux on the Road: A Guide for Laptops and Mobile Devices|
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Check the memory usage with free and top.
Mergemem Project . Many programs contain memory areas of the same content that remain undetected by the operating system. Typically, these areas contain data that have been generated on startup and remain unchanged for longer periods. With mergemem such areas are detected and shared. The sharing is performed on the operating system level and is invisible to the user level programs. mergemem is particularily useful if you run many instances of interpreters and emulators (like Java or Prolog) that keep their code in private data areas. But also other programs can take advantage albeit to a lesser degree.
You may also reduce the kernel size as much as possible by removing any feature which is not necessary for your needs and by modularizing the kernel as much as possible.
Also you may shutdown every service or daemon which is not needed, e.g. lpd, mountd, nfsd and close some virtual consoles. Please see Small-Memory-mini-HOWTO for details.
And of coarse use swap space, when possible.
If possible you use the resources of another machine, for instance with X11, VNC or even telnet. For more information on Virtual Network Computing (VNC), see http://http://www.uk.research.att.com/vnc/ .