[syslinux] How to boot a compressed CD-ROM image from disk

[Fulko.Hew at sita.aero]

I'd like to take advantage of the small, compressed Linux systems
such as Knoppix or BeatrIX, but I can't have a CD rom on my system.
(A project's marketing requirement.).  So I figure I could use something
like SYSLINUX or ISOLINUX to do it for me, but there is some magic
in the process (the sequence of booting) that eludes me.

1/ mbr (from SYSLINUX) installed on hard drive... and boots
2/ it loads SYSLINUX (that exists where, on what filesystem), which does
what?

... a gap in understanding exists here ...

n/ something mounts the ISO image residing on an ext2 filesystem via the
   'loop' option enabling looking at the compressed filesystem in that
file.

n+1/ you now have a running system


If my understanding (above) is correct, there is something, somewhere
in SYSLINUX, or its config file that I can use/edit to tell it to mount
that ISO image as a file system for SYSLINUX to use as its root filesystem.

If this assumption is correct, what I don't know (from SYSLINUX docs) is
where do I put SYSLINUX?

...

Now that I've read the docs a few more times, it seems as though
I should be using EXTLINUX instead...

a) take the MBR from SYSLINUX and install it on the drive.
b) also place in the /boot directory, an extlinux.cfg file
   that contains some stuff.  (what stuff still eludes me)
c) create a minirt24.gz file that contains stuff to mount that
   ISO image file.  (I don't know how to build/view this file.)


Any help would be appreciated.

TIA
Fulko