When considering operating systems that consume minimal memory and hard drive space while remaining functional, several lightweight Linux distributions are highlighted. Damn Small Linux is noted for its extremely low resource requirements, functioning with a kernel and a few device drivers in under 50MB. The discussion also mentions ARCH ARM Linux, designed for tiny hardware configurations, and the Raspberry Pi 2, which offers 1GB of memory for around $40, making it suitable for embedded systems. For user-friendly options, Ubuntu and its lightweight variants like Lubuntu, Bodhi Linux, and Peppermint Linux are recommended, as they typically use less than 200MB of RAM on boot and come with pre-installed applications. MS-DOS is mentioned as a minimal option, though it may face compatibility issues with modern software. For those interested in real-time operating systems, a comparison resource is suggested.