Debian router (compressed FS needs)

[Jean-Michel POURE <jm@poure.com>]

Dear all,

I am trying to build a Debian router using a mini-itx board, with a 128 Mb USB 
stick and some 128 Mb RAM. I only need a very few services including DHCP, 
SSH, ROUTED, etc... 

I already read http://gate-bunker.p6.msu.ru/~berk/router.html but would like a 
more standard solution not based on custom packages but the main Debian ones, 
compressed on file system.

1) RW compressed FS

Basically, I would like to ease installation and maintenance using a 
compressed FS.

Is there any "rw" compressed file system in the 2.6 Debian kernel ?
Have you tried to build custom kernels with http://squashfs.sourceforge.net ?
Are there similar projects to SquashFS included in the 2.6 kernel?

2) Cloop based Debian distro

If SquashFS cannot be used, is there any Cloop based Debian distro for 
installation on an USB key ?

Any help appreciated.

Best regards,
Jean-Michel