FloppyOs is an operating system that can fit on one or more floppies
I am not sure if they are open source, but there is a Linux FloppOs called Tinfoil Hat
It can be found here http://tinfoilhat.shmoo.com/
There is also a wikipedia article about MiniLinux
http://en.wikipedia.org/wiki/Minilinux
There is also a link to Linux on a stick
Thought you might like that
very nice
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DSL has an "embedded" distribution. It includes a bootable DSL distro plus qemu for Windows and Linux pre-setup for running DSL in a virtual machine in Windows or Linux. Very nice!
Only difficult part is setting your USB thumb drive up to be bootable. I recall that being more complicated than it needed to be.
Signature automatically removed for being too awesome.