> Should I resort to an old Linux distribution?  Or is there some way I
> can build a Linux system on my installed Debian system for the old PC?

Read and learn:

http://www.linuxfromscratch.org/

You can build your own system (on the running Debian system), but it might be 
sufficient for you to read about the boot process and learn how a Linux 
system starts up.  Maybe you can go on to figure out what the problem with 
your live CD is.

I built an LFS image for a system such as yours.  It was a minimal system to 
boot and connect to an NFS server.  I built a kernel on my (Debian) system 
and put together a boot image as described.  It was actually a fun learning 
experience (and I don't mean it euphemistically, it actually worked!).

Have fun!

Andrew

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