In general, you want faster/higher bandwidth/lower latency RAM. It all depends on how much you want to pay. Faster RAM w/low latency is where it gets expensive. At the very least you can get cheap PC3200, which will be better than PC2700.
2GB is all I install for 32-bit systems 2000/XP systems. If any more than 2GB is needed, it's time to start looking at a 64-bit Windows Vista/7/8.1/10 systems (and leapfrogging to a minimum of 8GB, heh...).
If you're planning to install Windows 9X, I'm sure the other good folks here can guide you to nirvana, but PC3200 recommendation should stick.
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