Do you want a really small Linux server distribution? Read on…
Linux on a Stick, or commonly known as LoaS, is a project to make a stable live CD / USB-Flash key based Linux server in a size of about ~70Mb. Its is comprised of a simple Linux distribution that runs from RAM memory instead of hard drive or the base media, in essence hastening all processes. This approach done by its creator allowed the running of a stripped Linux operating system, yet so stable and requires a little amount of computer resource. This Linux distribution was targeted to Server administrators who are already familiar with Linux especially the command line interface, because the only configuration method for such system is done on the command prompt.
Full documentation about this project is available at LoaS Wiki