Have you tried Suse Studio?
oops! forgot link http://susestudio.com/
As per recommendation from Rajagopal, I tried susestudio. Its awesome.
I created a new distro based on OpenSUSE 11.3 - Base system + GNOME, 32bit. Added Firefox, Adobe Flash Player and NetworkManager. All configuration were standard and created a new ISO. The ISO was 351 MB. Tested it, worked great!!
I need help on 2 issues. (1) Are there any modules (as per the above selection) which I can remove to reduce the ISO size (2) Where will I find the GUI tool which allows me to setup my network interface parameters (IP, NM, G/w & DNS). I included NetworkManager, assuming that it will help me setup my network interface. But I would not find a menu option for this anywhere.
Any help is appreciated.
Thx & regards,