you should try with the latest and see if it works. 128 MB is really little, but how much blender needs is rather determined by the complexity of the objects you work with. Can't you upgrade your video card? Decent cards are really affordable nowadays.
I'm sitting, waiting, wishing, building Blender in superstition...
2.57 is quite different from current versions, in 2.63, the mesh modelling system changed from tris+quads to ngons. And there are plenty new modelling tools in recent 2.68. So you should try that as well.
I'm sitting, waiting, wishing, building Blender in superstition...