There must be some other problem. P3 CPU's support running PAE. I have 2 running myself. Here is the info on one of them
Edit: Looking at your attachment a little closer, it appears to be a HDD I/O problem. See the references to "read only file system"? This is a sign that the drive is failing and has been mounted read only. I would start by using fsck on the partition in question first and then check the drive health.
bab@ventura:~$ uname -r
bab@ventura:~$ sudo lshw -C cpu
product: Pentium III (Coppermine)
vendor: Intel Corp.
physical id: 4
bus info: cpu@0
width: 32 bits
capabilities: fpu fpu_exception wp vme de pse tsc msr pae mce cx8 mtrr pge mca cmov pse36 mmx fxsr sse up