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I don't know about Virtualmin, but Webmin will operate just fine on 128MB systems.
As long as you disable enough services it should work. I believe they even have a guide on how to do it.
I'm running my mail server in Virtualmin with only 256MB RAM, works like a dream.
I run a joomla website in a box of 256MB ram and 1vcpu core with virtualmin installed and is running smoothly (mem not loaded over 45-50% most of time). Just avoid to run to the same box mail server with clamav etc.)