You're best off staying with Jaguar. Panther and Tiger are really a bit much. Panther will want 256mb really.. So you could up it and try, but Jaguar is really as far as you should go, otherwise you're just going to kill it.
I run Panther on a Powerbook with roughly the same specs and it works although it takes a while to start up and get going. The advantage of running Panther is a lot more applications become available to you, as most seem to require 10.3.9 minimum nowadays.
OP, unless you plan to upgrade the ram, i would stick with what you have. If you get a ram upgrade in the future, upgrade to panther. Tiger is out of the question
Great advice... I think I'll stick with Jaguar (i remember being a switcher when it came out 🙂 ) Upping the RAM wouldn't be a bad idea right? Even so I'll stick with Jaguar