done both. i'm hacking at a crunch-style distro for the soekris, which with a less stingy kernel would probably run on all flavors of the nexcom as well. the kernel is 3.0MB, which means that it would fit very nicely onto a 4MB compactflash, and leave you 1MB for persistent storage (like ssh keys, vpn configs, /dev/urandom backups, passwd)
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Nice work. How do you handle /var/log since disk space is very tight?
JOON