Making your own linux distro with Linux From Scratch
First of all I do not want to put you of this project but this is not small project. It will take a while but the feeling of accomplishment at the end is worth it. If you are a beginner with linux then it might take you a bit longer but you will become an amateur at linux after this project. A pro at linux would be a Guru.
You need to go to this website to download the latest Linux from Scratch PDF that gives you the overall steps you need to do to make your distro.
Once you have completed the the LFS distro you can go on to make bigger distros if you are up to the challenge. The oppurtunities with linux from scratch is endless.
