Hi!
I can confirm that 128MB RAM work with Jlime. I installed it and it booted up fine with all 128MB.
Since i have not got it to work with NetBSD, i think i give it a try and switch over to Linux.
But not with the old Jlime stuff. I found a post from a guy who successfully booted a 4.7 Linux Kernel ...
Here is a screenshot from the JLime desktop with Torsmo:
Stefan