Yes, put the boot commands you used after "dsl" before, at the end of the command line for that menu option in "/boot/grub/menu.lst". Also remove the "vga=788" command from that line (in my menu.lst it's vga=791 for fb1024x768, but no matter).
With this done, the line should look like:
'kernel /boot/linux24 root=/dev/hda2 quiet noacpi noapm nodma noscsi frugal xmodule=fbdev fb1024x768 lowram'
Some of the other options could probably be played with as well to increase performance and features, but I'll leave you to play around with that with reference to the wiki page (http://damnsmalllinux.org/wiki/cheat_codes.html), if desired.