The minimum memory requirement for Ubuntu 8.10 is 256 MiB of memory. (Note that some of your system's memory may be unavailable due to being used by the graphics card.)
With only the minimum amount of memory available, the installation process will take longer than normal, but will complete successfully, and the system will perform adequately once installed. Low-memory systems may be able to use the desktop CD to install by selecting "Install Ubuntu" from the boot menu to run just the installer, rather than the whole desktop started by selecting "Try Ubuntu without any change to your computer".
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