DragonLinux is an Internet-ready distribution which is only 150MB installed. It is a fully-functional UMSDOS/Loopback hybrid complete with networking tools, a compiler, X-Windows, KDE, and documentation.
Information regarding Project Releases and Project Resources. Note that the information here is a quote from Freecode.com page, and the downloads themselves may not be hosted on OSDN.
Inclusion of a compiler, X-Windows, KDE, and a built-in help system (DragonHelp); utilization of both UMSDOS and loopback filesystems for optimum flexibility and efficiency.