Documentation exists on creating tiny Live Linux CD from scratch (scratch being a regular Fedora Core installation)
Extemely Small, only around 30mb
Easily upgradeable and user-customizable
Runs entirely on ramdisk; there is never a need for a harddisk. Also, the CD is read once at bootup and never again. This guarantees very fast speeds.
Has many useful servers running.
Has great networking capabilities with iptables
Apache Web Server with PHP support
SSH, SFTP, SCP