well
I think you need to first delete files or remove any unnecessary apps
and orphaned libs
also, clear your browsers cache/history and remove anything you dont need
I've made like 20 remastersys ubuntu's and debians, some manaully
some with remastersys, in the last week!
the way I did it it was I installed a minimal system via net-install (via netbootcd)
I unchecked everything during install, no desktop, no base system
I then rebooted after install and started apt-get'ing apps like lxde, gimp, etc
after adding just minimal stuff I kicked in remastersys backup
and kept adding stuff till I hit 670MB+kernel/initrd
my Canabix-LXDE iso is a remastersys make
I actually made 2
one is lxde using remastersys/ubuntu
http://community.canabix.org/smf/index.php?topic=71.0
and the other is my grml-magix manual remaster
http://community.canabix.org/smf/index.php?topic=70.0
check em out if you want