The RAM will be a problem with Tomcat.
Here's a site I found that benchmarks several machines of this approximate caliber. I mention it here so you can see for yourself the differences a change in CPU, memory complement, and disk type might make. Notice that the most dramatic improvements come from adding a SCSI disk -- that's because memory paging becomes far less of a ball-and-chain on system I/O. Excessive swapping (
thrashing) on a cheap-o EIDE/IDE drive is what usually drags an otherwise useful low-end box to its knees.
If money is an issue, use these tables to determine the biggest likely bang for your buck. Memory's way cheap right now, disks aren't far behind, and 200 MHz CPU's probably cost as much to ship as buy. ;-). Quadrupling memory would be good for starters, but a faster disk subsystem means you'll thrash much more efficiently.

[ January 22, 2002: Message edited by: Michael Ernest ]