For your Problem:
My standard disclaimer is never buy a PC from IBM: They do not know anything about making PC's. All of their parts are made by some other company. I have used their brand of Hard Drives and like them. I don't know who really makes them, but they seem to run pretty well.
If you have a PC that is 300Mhz, the sad fact is that it isnt worth spending much money on. I prefer a computer case that is a standard ATX design and not from a retailer like IBM, HP, or Dell. I would recommend buying a new case and a new Motherboard/Processor Combo and trying to use as many old parts as possible. Any custom design shop could probably take the old parts (Hard Drive, Floppy, CD, Mouse, Modem, Sound card, network card, monitor) and upgrade it for you. You might need some newer faster memory also.
Another option is to find a good shop locally that custom builds PC's and just have them diagnose the problem and have them tell you what is wrong with it. They can probably take your memory out and test it in another computer. If your memory is not bad it might be the motherboard itself. You need to know if the memory is any good before you decide what to do.
If you are testing it yourself, I would have taken all the old memory out and put just put one new stick of memory in it. If it doesn't boot to at least a floppy it is some other hardware issue. Try booting to a floppy. Can you boot to just a floppy boot disk? If it isn't the memory then it really starts getting difficult to determine what it is. You would normally remove everything except the floppy and see if you can get the computer to boot up, and proceed from there.
If it isnt the memory and it will not boot from just a floppy then it is probably the motherboard/CPU. If that is the case, then it is time to buy a new motherboard/CPU anyway. If you have to replace either one it is probably better to buy a new one of each. Buying old junk isnt worth it. I am sure IBM would sell you a new motherboard for some rediculous price that you do not want to spend for the same old computer you have when you could buy new parts for less. The problem with IBM parts is you don't know who actually made them! IBM doesnt support old equipment very much at all. To IBM the PC is just a business on the side; it is not their main business. If you do not like my post feel free to point out your opinion or my errors.