Install Slackware maybe is so simple way. but how if the size of installation must not bigger than 300 MB and you must include the webserver.
the first question is why install the Linux with small size?
the answer is to prepare the system to be embedded into small hardware (tiny computer), so, the system must be very-very efficient.
the second question is how?
let me show you what is the package that you want to make Linux Slackware under 300MB.
(I used Slackware 13)