Linux and Free Software :: making a live CD from scratch

I'd like to make a live CD from scratch. Nothing complex--just unix with a custom shell.
How do I actually make a bootable CD? Do I just make a 700 MB partition, install what I want on there and then burn it?

Google Linux From Scratch.

They have many how to guides, including a live CD guide.

Also take a look at this link: http://lwn.net/Articles/171325/

original here.