If the client asks for something that is clearly virtually impossible -
such as converting a large C++ program into something that will run on
this microcontroller (with its severely limited 8-bit cpu, poor C
compiler, and 3K of ram), including Ethernet handling - then that's
usually something you discuss with the client. Perhaps there are
situations where it is best to simply try as hard as you can, but
usually honesty works best here.
In this case, the OP has chosen the microcontroller here himself as far
as I can tell. But I don't have a complete picture - he has described a
device that has two network ports, where unencrypted traffic comes in on
one port and encrypted traffic goes out on the other. How he intends to
do that with this PIC, with one Ethernet connection, is unknown to me.
Perhaps he will use two of them, connected back-to-back via a UART
interface. If all the encryption is done at the Ethernet packet level,
rather than TCP/IP or UDP level, then it's conceivable that it could be
done even with this small ram. (What the device would then talk to is
another matter.) It would be "security by making a system so slow that
no one would use it and thus there is no security risk", but maybe
that's his aim.