I'm going to have some mindeb images available soon, and the first editions won't be as small as they can be, but they will be pretty small.
The disk images will be approximately 256MB to start, so that I can experiment with different services and configurations. After that, I'm going to work on honing the size down, as well as using squashfs and unionfs to compress everything.
Alternatively, for those using the images with virtualization, I'm going to work on using qcow2 images.
UPDATE: This is coming along great! The squashfs rootfs is about 9MB, and so it might be possible to mindeb on a 32MB, 64MB or 128MB compact flash drive.
If you are "in the know" and have technical skills, please try out the work-in-progress nodows toolkit.