I don't know of any ditros, specifically - genereally, there are either
distros that focus on the higher end machines with the newest X and KDE
and so on, or there are distros that focus on low-end firewall
appliance-type boxes. That being said, a minimal set-up with something
like icewm (really lightweight, and looks roughly akin to win98) and
DOSEmu should do most of it for them. I haven't looked at DOSEmu in a
while, though - several years ago it didn't work that well for many
things, but I have heard that it's better now. Caveat user.