Hi Kat, you obviously know what you're doing, but I'd suggest you produce a bootable CD Linux based on DamnSmallLinux (
http://www.damnsmalllinux.org). This is only 50MB before you've added your stuff and could be booted from a CD or installed on a HD. It doesn't include fancy desktops, OpenOffice etc. but is a nice small easy-to-understand Linux.
Good luck, Paul