I think you might be able to get it to play _some_ movies, depending on filetype, compression ratios and resolution. Vectorlinux will not be the distribution of your choice though, since it will not run on hardware with those specs.
You might be able to pull something like this off with Damn Small Linux:http://damnsmalllinux.org/wiki/index.php/FAQ#Will_DSL_ever_get_bigger_than_50_MBytes.3F
Or perhaps one of the other really small linux's : http://en.wikipedia.org/wiki/Mini_Linux
ps. Just noticed lagagnon's tip, that's a really good one (if recycling depots are anywhere near)!