This box will serve as a good internet gateway and firewall. You can install samba/squid on it and it will work too, but you need large RAM to actually put it to some practical use.
32MB is fine enough. I used a similar box with Debian for a while. It was a bit slow but the processor was to be blamed for that. I currently am using the same config with 128MB ( or is it 64MB? ) RAM and it works like a dream :). I have great uptimes, stability, low running costs, no heating issues :)
-- Regards,
Dinesh A. Joshi