I have a an older Omnibook with a neomagic video card. I have successfully installed VL on this and a couple of other computers with neomagic cards. In most cases I have manually configured the card for best performance. 2 versions of 5.8 and 5.9 have installed on the Omnibook and configured the video card without a hitch.
I should point out that the OS and desktop will work fine. jwm consumes the least memory so you probably should choose that as your default desktop. Some applications won't work or will be intolerably slow at 32MB. You won't be able to use Firefox and even Opera will be terribly slow. Dillo and lynx will be your browsers of choice from what Vector Linux offers. The office packages, AbiWord and Gnumeric, will be a little slow but they will work fine. Most of the multimedia stuff (xine. xmms) needs more resources than your system has. If you need an image viewer/editor you can install xv from the repository. It will work acceptable well at 32MB.
This is good advice. Lynx text browser is a very quick low resource web browser. Dillo provides the ability to render images should it be necessary. The Links2 variant of the Links text browser might be an option to consider since when compiled to do so it will launch either as a frames capable text browser or as graphical browser (links -g). It is also ssl and javasript capable when compiled with those options. Check the repositories there might be a Links2 package available there. I use the JWM desktop on my Omnibook and I have not found a reason to switch.
I think silverbirch is right - edit your /etc/X11/xorg.conf file and change Driver to vesa and DefaultDepth to 16.
Also, RAM is incredibly cheap these days, you can probably find a recycler that will give you a 128 or 256MB stick for that machine. It would be worth your while to increase the 64MB and make it a more usable machine, IMHO...
I second that opinion. I had a 266MHz Omnibook with 32MB of RAM originally. I dug up a 128 MB stick from one of the online recyclers and installed it in the Omnibook for a total of 160MB. It made a world of difference. Have fun and keep us posted.