XPLite is a software utility which lets you tweak Windows XP to create the operating system you want. Remove components, strip out useless features and reduce your operating system footprint down to a pretty cool level. They’re talking about squeezing XP into around 300MB (down from gigabytes) which is pretty impressive. Bet it’s fast too. $39.95.
The latest developments in XPLite now see clean installations of Windows XP in under 350MB and Windows 2000 approaching less than 200 MB (excluding paging file) with much smaller memory requirements! These sizes are obtained simply by running XPLite/2000Lite on a fresh install of windows. Enterprising developers should easily be able to strip out additional log files, INF files and unused drivers to reduce the footprint by another 50MB or so. If your goal is to run a dedicated task in as little storage as possible – then look no further than XPlite. If your needs are for a smaller OS, then ask yourself if you really need Windows XP or Windows 2000. We can fit a Windows 9x OS into a 16MB flash chip and most solutions fit readily onto a 32MB chip. Check out Embedded Windows 9x.