Thanks for your responses. I have to agree it appears 64MB of RAM is not enough since at the moment there is 856K free memory. Of course there is no old DIMM on the market I can use because it is not using SDRAM even so upgrading is not a possibility unless I buy a new system.
I am not using X-Windows and I did the most stripped down install possible.
I personally believe CPU power is more than sufficient because the CPU power that asterisk uses has never gone over 2%!
After I recompiled using a special PROC=i586 flag the sound has basically been perfect as WillKemp describes. There are occasional and very slight blips but almost never.
I suppose it would happen when RAM is being swapped for a small second.
I guess I’ll have to hold it out for now unless I can tweak the Kernel to remove USB support and other stuff.
I’m sure if I had more RAM it would run perfect, CPU power is not the issue after watching the stats in top.
Thanks again everyone for the suggestions. I will try stripping out the kernel when I get a chance!