If possible, can someone check out this page about AdvanceCD and see if it's possible to add into a different variation using Linux Live CD/USB?
Thanks.
( http://advancemame.sourceforge.net/cd-readme.html )
Actually I put that wrong-I am trying to build a small distro with Linux Live CD that only plays atari games-no office stuff, etc.
I just want to make a linux distro that boots from usb and it's sole purpose is to play atari games on my laptop (160MB-RAM, 4GB HD).
My goals are that it is about 300-500MB installed on HD, and has the ability to compile from source-Slackware maybe?
Or can GRML linux be installed to HD?

I'm not 100% sure what you are trying to do. It sounds like you want to build a custom linux livecd. If so then I may be able to help, I recently did this at work. It turned out to be pretty easy once I figured out how to do it, I'll give you a few links that may help:
http://www.linux-live.org/
http://www.livecdlist.com/wiki/index...tion_Resources

look into "initramfs-live" (or casper) and squashfs
debootstrap may also be helpful.

also look into knoppix-mame