MicroBSD 0.6RC2 Released
RooTchO writes "Included in this release is the new Extended Security Features, Improved/Additional sysctl parameters. New binaries in this release are: pfradix, pfsyncd, aclctl, netacl, getfacl, setfacl and cgdconfig. We have added chrooted sshd, apache, bind. Special files to also see are /etc/sysctl.conf, /etc/acl.conf and /etc/sshd/sshd_conf. And many new other goodies :)))"
http://www.microbsd.net/doc/handbook/nutshell.html
It's small, lean and from what I've seen has the best of all BSD's incorporated into it.
Best of all, it's BSD licenced rather than the restrictive GPL.
I believe for the embedded apps you want something more like PicoBSD. I think there are even small embedded systems being sold with that, but I'm not 100% sure. Their site should have a list of compatible hardware however.
This is Release Candidate 2, hopefully the last before the 0.6 Final....