muLinux is a minimalistic, but mostly complete, script- based Linux distribution that fits on a single 1722k floppy.
X11 and GCC addons are supported on additional floppies. Includes many basic system functions, such as PPP
and Ethernet support, mail processing, NFS, Samba, FTP, IRC Finger, ipfw, etc.
http://sunsite.auc.dk/mulinux/