The minimum requirements for Leopard include a G4 processor running at 867 MHz or faster and at least 512 MB RAM. Realistically, you really want 1 GB. In addition, you need enough space on the hard drive for the installation and headroom. The installation can take up to 5 GB (less if you opt out of unwanted languages and printer drivers) and you should leave a minimum of 5 GB free space (and preferably 10 GB) at all times.
It looks like you're OK for Leopard but your sister is not. She could, however, upgrade to Tiger. One place to look is at
FastMac. Be sure to get a full retail, generic version (black label) and not a machine-specific version (gray label). Since she has 10.3.9 installed, she could also opt for the Upgrade version. This one requires that 10.3 be pre-installed. The downside is that, if she ever needs to reinstall Tiger, she won't be able to use Archive and Install. Instead, she'll have to wipe the drive, install 10.3 and then install 10.4.
Oops! I looked at your sister's RAM and read it, mistakenly, as processor speed. She should be able to successfully install Leopard.