@gkontos
I haven't done it in awhile, and make sure you have a CD or DVD with a yum rpm on it, but the trick is to uncheck base system in package selection. That includes lots of things you don't need. (Also uncheck everything else in all the package selections.)
It gives you a nice minimal system.
There's a Linux program, similar to FreeBSD jails, called Vserver which also gives you a REALLY small install, doesn't include, for example, less, which ssh and a few others that I'd consider basic.
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