Limited Hard disk space

http://www.PuppyLinux.org

You can run it from a FAT32 or NTFS partition. It will even reside in a folder with in Window if you do not want to get rid of windows and still not create a second partition.
Depending on the version you wish to use with Puppy Linux, it  can be as small as 40mb or up to 200mb+ in size.

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