http://superuser.com/questions/370586/how-can-a-linux-kernel-be-so-small
Early Linux distributions such as Tom's Root-Boot, MuLinux, Diet-router, (the now defunct) LOAFand many others now departed, all fitted a working Linux system on to one or two 1.44 MB diskettes.
The Linux kernel has grown but don't forget it is modular, kernel modules are loaded as needed. Thus it is still possible to produce a Linux distribution with a very small footprint.
See: Kernel Size Tuning Guide - eLinux.org
If you read Linux_tiny.pdf you will see this
historic 0.99pl15 kernel: Slackware 1.1.2, 1994 301K
Fedora Core 2 1.2M
SuSE 9.1 1.5M
2.6.5-tiny1 test config: IDE, ext2, TCP, NIC 363K
Early Linux distributions such as Tom's Root-Boot, MuLinux, Diet-router, (the now defunct) LOAFand many others now departed, all fitted a working Linux system on to one or two 1.44 MB diskettes.
The Linux kernel has grown but don't forget it is modular, kernel modules are loaded as needed. Thus it is still possible to produce a Linux distribution with a very small footprint.
See: Kernel Size Tuning Guide - eLinux.org
If you read Linux_tiny.pdf you will see this
historic 0.99pl15 kernel: Slackware 1.1.2, 1994 301K
Fedora Core 2 1.2M
SuSE 9.1 1.5M
2.6.5-tiny1 test config: IDE, ext2, TCP, NIC 363K