You are referring to FSPort, correct? Yes, it can be done. It isn't the same as playing the original retail FS1, but it's damn near, at least. And it is a good choice for those who have these memory problems.

Thank you for all the helpful answers guys.
As it turns out, my boot.ini option that was harshly rebooting my machine when selected, had some odd typo in it. Not sure why, I copied it directly from another thread, but either way it works great now.
I will look into the FSO project as well, and take advantage of my entire amount of RAM as well as the graphical updates.
Thank you again!

Works with FSO, thank you all for that.