you need to
1. Create a unattend install file make sure you list the components you want removed. This should remove the majority of crap. If you are not sure how to do this extract the deploy cab and use the setupmgr. Once you have created the file rename to winnt.sif and boot from cd.
2. Once install is finshed you can remove the driver.cab that will give another 70 mg of space.
3. If you have suffieicent ram kill the paging file.
4. If its not small enough start removing items by hand, usually netowork gear like nslookup is still there as well as things like nt backup.
Once finished if you are lucky you should be around the 300mb mark, I have a win2k box like this atm I am devolping a new product on and its sitting at 315 and I have not yet started to remove files by hand.
Seriously though and ppl dont flame me please for a tiny install think linux or some type of embedded system.
if you need any more help i will be around or msg me