.. Keep your /home on disk.
Respectfully disagree, based on experience with low spec hardware and *Core the following alternative works well:
* *Core works great on old hardware. Running X.org and Fluxbox uses ~50 MB RAM at boot and ~67 MB running emelfm, Dillo and xterm. dCore link but same idea: http://wiki.tinycorelinux.net/dcore:faq#what_are_the_recommended_system_requirements
. Set up appropriately a 256 MB RAM system runs Xorg no problem with resources to spare for light applications.
* Rather than dedicated /home and /opt, set up a seperate ext2 data partition for downloads, personal files, etc. Tiny Core doesn't need more than 1-5 GB for the OS, the rest of the drive can be for personal data. Only use /home for configs and keep it small using /opt/.xfiletool.lst. Periodically copy mydata.tgz to networked system or cloud (contains nothing personal). Extract the back up as needed to restore system or set up new system. Takes only couple minutes to set up preferred configs for WM, browser, file manager, etc on a new install on another computer. As the seperate data partition is not automounted at boot, unlike /home, an extra layer of security for personal data.
* On low end hardware there is a noticeable performance difference using a heavier Window Manager, such as Fluxbox, versus FLWM or even JWM.
* If an application running standalone is close to maximizing RAM (ie. FF, OO), use leaner software (easy) or upgrade hardware (more effort, possible expense).
* A 256 MB low RAM system can run a leaner browser 24/7 without any issues or cache problems.
If you're still around FruityComputers, hope this helps.