As a general rule, the swap partition should be at least double the system RAM, so a 64MB minimum partition is recommended for your swap partition, although this is not essential.
As for RAM limitations, 32MB should be more than enough to run the installer, although you might get problems later if you run X Windows with the computer not having much RAM it'll be slow-ish.
I would assume that it would ask for CD2 if required, so I'm hazarding the guess that its either a CD problem (package can't be read due to damaged CD or damaged ISO image) or that there is some kind of conflict between the system and that package. What exactly is "package 9.1"? Some extra details would be helpful here, but in the meantime, try a larger swap, and try to download and burn the ISO again (usually ISOs have MD5 checksums you can use to check that the ISO is entirely accurate before burning to CD, thus reducing the likelihood of errors on the CD).

Hope that helped.